10 Analysts Assess Affirm Holdings: What You Need To Know

During the last three months, 10 analysts shared their evaluations of Affirm Holdings AFRM, revealing diverse outlooks 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.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $46.1, a high estimate of $65.00, and a low estimate of $25.00. Witnessing a positive shift, the current average has risen by 9.19% from the previous average price target of $42.22.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Affirm Holdings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Affirm Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Affirm Holdings compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Affirm Holdings's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Affirm Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Affirm Holdings analyst ratings.

Unveiling the Story Behind Affirm Holdings

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.

Key Indicators: Affirm Holdings's Financial Health

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

Revenue Growth: Affirm Holdings's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 47.86%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -6.85%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Affirm Holdings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -1.69%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Affirm Holdings's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.48%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Affirm Holdings's debt-to-equity ratio stands notably higher than the industry average, reaching 2.42. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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