Mizuho Maintains Outperform on Affirm Holdings, Raises PT to $108

Mizuho Maintains Outperform on Affirm Holdings, Raises PT to $108

Mizuho Financial Group has reaffirmed its "outperform" rating on Affirm Holdings, Inc. (AFRM), while raising its price target to $108. This move comes following the company's strong fourth-quarter earnings report, which exceeded market expectations. According to the latest financial data, Affirm's Q4 revenue increased by 33% year-over-year to $876 million, with net profit reaching $69.2 million, compared to a loss of $45.1 million in the same period last year [2]. The company's gross merchandise volume (GMV) also grew 43% year-over-year to $10.4 billion, indicating robust spending volumes.

Mizuho's decision to raise its price target reflects the firm's confidence in Affirm's growth trajectory. The company's expansion into new markets and its focus on underwriting consumers with strong repayment abilities are key drivers of its success. Affirm's ability to maintain high credit performance and continue its growth trajectory has been a significant factor in its recent performance [3].

Looking ahead, Affirm has issued solid guidance for fiscal year 2026. The company expects its revenue for the first quarter of fiscal year 2026 to be between $855 million and $885 million, while gross merchandise volume is expected to be between $10.1 billion and $10.4 billion [3]. These projections indicate that the momentum from Q4 gains is driving a positive outlook for the company.

Affirm's stock has been trading near the top of its 52-week range and above its 200-day simple moving average, reflecting investor confidence in the company's prospects [4]. The stock price has increased by 31% this year, surpassing the Nasdaq index's increase of 12% [3].

In conclusion, Mizuho's decision to maintain its "outperform" rating and raise its price target on Affirm Holdings reflects the firm's confidence in the company's growth trajectory. Affirm's strong performance and solid guidance for fiscal year 2026 indicate a robust rebound for the buy now, pay later (BNPL) company.

References:
[1] https://finance.yahoo.com/quote/AFRM/
[2] https://www.bitget.com/news/detail/12560604939554
[3] https://www.ainvest.com/news/affirm-holdings-reports-q4-earnings-revenue-beat-boosts-fy2026-guidance-2508/
[4] https://www.cnn.com/markets/stocks/AFRM