Analysts Bump Up Price Targets On Affirm Post Q1 Top-Line Beat, Amazon Deal

Analysts hailed Affirm Holdings Inc's AFRM quarterly results and the Amazon.com Inc AMZN deal by raising their price targets.
Barclays analyst Ramsey El-Assal notes Affirm reported a "strong" fiscal Q1 beat and raise. Still, the more critical headline is announcing an exclusive partnership with Amazon, where Affirm will now be the sole buy now pay later (BNPL) provider on U.S. purchases through 2023.
The analyst says the deal is not fully reflected in Affirm's outlook and "could represent nice medium-term upside."
He maintained an Overweight rating on the shares with a $175 price target.
RBC Capital analyst Daniel Perlin raised the price target to $175 from $130 (suggesting a 16% upside) and reiterated an Outperform.
The analyst cites its "strong" Q3 results and outlook, highlighting growth beyond Peloton Interactive Inc PTON as some of its other large clients ramp up activity.
Perlin is also optimistic about Affirm's new expanded relationship with Amazon, allowing the company to be "the only BNPL" partner in the U.S. until January 2023.
BofA analyst Jason Kupferberg raised the price target to $191 from $183 and maintained a Buy as he increased his FY22 and FY23 revenue estimates and GMV forecasts following the company's Q1 results and guidance.
Truist analyst Andrew Jeffrey raised the price target to $210 from $150 and reiterated a Buy after its better than expected Q3 results.
The company is the BNPL provider of choice as industry growth remains rapid and competition intense, the analyst notes, adding that Affirm stands out due to its superior data-driven tech stack, which drives better outcomes for all ecosystems participants.
Credit Suisse analyst Timothy Chiodo raised the price target to $150 from $105 and affirmed a Neutral.
The analyst notes Affirm beat on topline metrics to start the fiscal year and raised the full-year 2022 guidance for these metrics by 4%-5% each at the high-end.
Further, additional information around the Amazon relationship was made available, with Amazon now contracted through Jan 2025 and Affirm assuring that Amazon will not add other non-card offerings from specific competitors through January 2023.
Price Action: AFRM shares traded higher by 13.7% at $151.76 on the last check Thursday.

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