A Closer Look at 7 Analyst Recommendations For Affirm Holdings

7 analysts have shared their evaluations of Affirm Holdings AFRM during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $33.57, along with a high estimate of $50.00 and a low estimate of $16.00. This upward trend is apparent, with the current average reflecting a 12.54% increase from the previous average price target of $29.83.

Breaking Down Analyst Ratings: A Detailed Examination

In examining recent analyst actions, we gain insights into how financial experts perceive Affirm Holdings. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Affirm Holdings. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Affirm Holdings compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Affirm Holdings's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Affirm Holdings's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Affirm Holdings analyst ratings.

All You Need to Know About 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.

Affirm Holdings: A Financial Overview

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Affirm Holdings's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 47.94%. This indicates 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 -28.24%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Affirm Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -6.42%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Affirm Holdings's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.91%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Affirm Holdings's debt-to-equity ratio stands notably higher than the industry average, reaching 2.37. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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