Critical Insights From Affirm Holdings Analyst Ratings: What You Need To Know

Across the recent three months, 15 analysts have shared their insights on Affirm Holdings AFRM, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $25.3, a high estimate of $55.00, and a low estimate of $12.00. Observing a 33.79% increase, the current average has risen from the previous average price target of $18.91.

Investigating Analyst Ratings: An Elaborate Study

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 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Affirm Holdings compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Affirm Holdings's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Affirm Holdings's market position. Stay informed and make well-informed decisions with 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.

Breaking Down Affirm Holdings's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining Affirm Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 37.31% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in 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 -34.6%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -6.74%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Affirm Holdings's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.07%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Affirm Holdings's debt-to-equity ratio stands notably higher than the industry average, reaching 2.21. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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