B of A Securities Reaffirms 'Buy' Rating for Affirm Holdings, Raises Price Target to $94

B of A Securities analyst Jason Kupferberg has reaffirmed his 'Buy' rating for Affirm Holdings (AFRM) with a raised price target from $90 to $94, indicating a continued positive outlook. The analyst's adjustment reflects historical updates in AFRM's analyst ratings and price targets, suggesting a strong market confidence in Affirm Holdings' future performance.

Affirm Holdings (AFRM), the buy-now-pay-later leader, has seen its stock price surge following a series of positive developments. B of A Securities analyst Jason Kupferberg has reaffirmed his 'Buy' rating for Affirm Holdings, raising the price target from $90 to $94, reflecting a continued positive outlook on the company's future performance [2].

The analyst's adjustment comes on the heels of Affirm's record-breaking fourth-quarter results for fiscal 2025. The company reported 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 [3]. Gross merchandise volume (GMV) also grew by 43% to $10.4 billion, underscoring the company's robust performance in the buy-now-pay-later (BNPL) sector [4].

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 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 [4].

The analyst upgrade 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 [3]. 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/
[3] https://www.benzinga.com/trading-ideas/movers/25/08/47415904/whats-going-on-with-affirm-shares-friday-2
[4] https://coincentral.com/affirm-holdings-inc-afrm-stock-surges-over-16-on-q4-beat-as-revenue-jumps-33/