Affirm Shares Skyrocket: Analysts Raise Price Targets Amid Strong Financial Results.

Affirm (AFRM) shares jumped 5.6% after analysts raised price targets following strong financial results. Mizuho increased its target to $108, UBS to $85, RBC Capital to $97, and Stephens to $93. The stock is highly volatile, with 56 moves greater than 5% over the last year. Affirm has surged 45.2% YTD, setting a new 52-week high.

Affirm Holdings (AFRM) shares surged 5.6% on Friday following a series of analyst upgrades that raised the company's price targets. Mizuho increased its target to $108, UBS to $85, RBC Capital to $97, and Stephens to $93. The upgrades come on the heels of Affirm's strong fiscal fourth-quarter 2025 results, which saw earnings per share of $0.20, surpassing the consensus estimate of $0.10, and revenue of $876 million, which was 33% higher than the previous year [1].

The stock's recent performance has been volatile, with 56 moves greater than 5% over the last year. Despite this volatility, Affirm has surged 45.2% year-to-date (YTD), setting a new 52-week high. The company's ability to balance growth with sustainable margins has been a key driver of its success, particularly in the face of increased competition from rivals such as Klarna [2].

Affirm's Q4 results were accompanied by a return to profitability, with net income of $69.2 million, compared to a loss of $45.1 million in the same quarter last year. The company's gross merchandise volume (GMV) grew by 43% to $10.4 billion, underscoring its robust performance in the buy-now-pay-later (BNPL) sector. The company's ability to drive sales for merchants while building a strong user base has been a key factor in its success [2].

The analyst upgrades and positive earnings report have fueled further interest in Affirm Holdings, with the stock trading 11.9% higher at $89.56 as of Friday's close [1]. The company's strong execution and optimistic guidance have been cited as key drivers of the momentum, with analysts pointing to secular adoption and expanding partnerships as key growth drivers [1].

However, some investors have expressed caution regarding potential volatility as the stock nears recent highs. The company's insiders have been active in the market, with 31 trades reported in the past six months, all of which were sales [1]. This activity, combined with the stock's recent price appreciation, may suggest some level of concern among insiders.

Despite these factors, the overall market sentiment remains bullish, with multiple analysts issuing positive ratings and price targets. Jefferies analyst John Hecht reiterated a 'Buy' rating on Affirm Holdings, while Morgan Stanley maintained a 'Hold' rating [2]. The median price target for Affirm Holdings is $77.0, with several analysts setting targets as high as $105.0 [1].

In conclusion, Affirm Holdings' strong Q4 results and analyst upgrades have bolstered investor confidence in the company's future performance. The stock's recent price appreciation and positive market sentiment reflect the broader industry trends and Affirm's ability to navigate the competitive BNPL landscape.

References:
[1] https://www.quiverquant.com/news/Affirm+Holdings+Stock+%28AFRM%29+Opinions+on+Record-Breaking+Q4+Results
[2] https://www.theglobeandmail.com/investing/markets/stocks/AFRM/pressreleases/34416263/affirm-holdings-afrm-receives-a-buy-from-jefferies/