Why Affirm Stock jumped today
Actions of Affirm holdings (NASDAQ: AFRM) surged today, up 11% as of 12:10 p.m. EST, after receiving a slew of coverage initiatives from Wall Street analysts. Ratings go from neutral to buy, with no bearish calls.
Here is a summary of all the new ratings for the public freshly. fintech:
- RBC Capital: outperformance rating, target price of $ 130.
- German Bank: Here, $ 120 price target.
- Truist Securities: Buy, target price of $ 160.
- Swiss credit: Neutral price target of $ 105.
- Goldman Sachs: Neutral price target of $ 95.
- Morgan Stanley: Overweight, target price of $ 142.
- Barclays: Overweight, price target of $ 132.
RBC Capital analyst Daniel Perlin believes that Affirm, a provider of installment loans, will continue to benefit from the “generational shift” towards the “buy now, pay later” (BNPL) trend while its network of markets will develop. Bryan Keane of Deutsche Bank expects gross merchandise volume growth of 40% to 50% over the medium term, but is concerned about the company’s valuation at current levels. Truist analyst Andrew Jeffrey estimates Affirm’s total addressable market at nearly $ 7 trillion and is optimistic about the company’s ability to gain market share.
Timothy Chiodo of Credit Suisse suggests fintech has plenty of options, but he remains cautiously optimistic. Morgan Stanley’s James Faucette sees the competition intensifying in the BNPL space, but says Affirm is very attractive to young people. Barclays analyst Ramsey El Assal said the company can grow and believes it will expand its product portfolio. And Matthew O’Neill of Goldman Sachs is encouraged by improving loan loss rates.
Affirm is expected to release its second quarter results after the close on Thursday.
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