Jefferies Analyst Reiterates Buy Rating on Affirm Holdings, Boosting Confidence in Financial Sector Stocks

Jefferies analyst John Hecht reiterated a Buy rating on Affirm Holdings, citing a 5-star analyst with a 15.4% average return and 60.96% success rate. Hecht covers the Financial sector, focusing on stocks such as Capital One Financial, American Express, and Synchrony Financial. Affirm Holdings also received a Buy from Bank of America Securities's Jason Kupferberg, while Morgan Stanley maintained a Hold rating. The company's market cap is $24.97B and has a P/E ratio of -356.47.

Analysts on Wall Street project that Affirm Holdings (AFRM) will announce quarterly earnings of $0.11 per share in its forthcoming report, representing a 178.6% year-over-year increase. Revenues are projected to reach $839.88 million, increasing 27.4% from the same quarter last year [1]. This upward revision in earnings estimates underscores the collective reassessment by covering analysts of their initial projections over the past month.

Jefferies analyst John Hecht recently reiterated a Buy rating on Affirm Holdings, raising the firm’s price target to $95 from $82. Hecht cited a 5-star analyst with a 15.4% average return and a 60.96% success rate. Hecht covers the Financial sector, focusing on stocks such as Capital One Financial, American Express, and Synchrony Financial [2]. Additionally, Affirm Holdings received a Buy rating from Bank of America Securities' Jason Kupferberg, while Morgan Stanley maintained a Hold rating.

Analysts expect the 'Revenue- Merchant network' to reach $234.97 million, indicating a year-over-year change of +29.8%. The 'Revenue- Card network' is forecasted at $59.11 million, showing a change of +37.5% from the prior-year quarter. 'Revenue- Interest income' is projected to reach $416.13 million, suggesting a change of +23.3% year over year. 'Revenue- Servicing income' is expected to reach $33.77 million, indicating a change of +22.4% from the prior-year quarter. The average prediction for 'Revenue- Gain on sales of loans' is $90.96 million, pointing to a change of +30% from the year-ago quarter [1].

The consensus estimate for 'Gross Merchandise Volume (GMV)' stands at $9577.07 billion, compared to the current estimate of $7241.00 billion in the same quarter of the previous year. Analysts predict that 'Transactions per Active Consumer' will reach 6, compared to the year-ago value of 5. The combined assessment of analysts suggests that 'Active Consumers' will likely reach 22, compared to the year-ago value of 19 [1].

Over the past month, shares of Affirm Holdings have returned +18.5% versus the Zacks S&P 500 composite's +2.7% change. Currently, AFRM carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future [1].

Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report [3].

References:
[1] https://www.nasdaq.com/articles/countdown-affirm-holdings-afrm-q4-earnings-look-estimates-beyond-revenue-and-eps
[2] https://www.tipranks.com/news/the-fly/affirm-price-target-raised-to-95-from-82-at-jefferies-thefly
[3] https://www.ainvest.com/news/affirm-quiet-revolution-embedded-finance-strategic-alliances-fueling-long-term-growth-2508/