A Glimpse Into The Expert Outlook On Affirm Holdings Through 5 Analysts

In the preceding three months, 5 analysts have released ratings for Affirm Holdings AFRM, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $44.0, a high estimate of $47.00, and a low estimate of $41.00. This current average has decreased by 5.58% from the previous average price target of $46.60.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Affirm Holdings by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Affirm Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Affirm Holdings compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Affirm Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Affirm Holdings's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Affirm Holdings analyst ratings.

Discovering Affirm Holdings: A Closer Look

Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a majority share of its revenue from the United States.

Affirm Holdings: Financial Performance Dissected

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Positive Revenue Trend: Examining Affirm Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 51.23% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -23.25%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Affirm Holdings's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -5.09%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Affirm Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.47%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 2.44, Affirm Holdings faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.