Affirm Holdings is positioned for potential growth, according to Bank of America, which has raised its 12-month price target from $93 to $104. Analyst Matthew O'Neill noted that Affirm's core buy now, pay later services are performing better than expected, and the company is exploring additional growth opportunities that have not yet been factored into its projections.
Following the release of its fiscal fourth-quarter results, which exceeded Wall Street expectations, Affirm's stock rose approximately 13% in premarket trading. The company anticipates revenue between $1.19 billion and $1.22 billion for the upcoming quarter, surpassing analyst estimates of $1.16 billion.
Furthermore, Affirm's potential to obtain a bank charter and engage in brand-sponsored promotions could further enhance its stock performance. Currently, 26 out of 35 analysts rate Affirm as a buy or strong buy, reflecting a consensus that aligns with Bank of America's optimistic outlook.
Despite a modest year-to-date increase of 4%, Affirm's stock has surged 65% over the past six months, indicating strong investor confidence