Affirm (NASDAQ:AFRM) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Key Points

• BMO Capital Markets raised its price target for Affirm from $86 to $101 and maintained an “outperform” rating, implying roughly 30% upside from the reported $77.49 share price.
• Analyst sentiment is broadly positive: Affirm has a consensus “Moderate Buy” rating and an average price target of $95.19, although Zacks downgraded the stock to “Hold” and some firms remain more cautious.
• Affirm reported a substantial quarterly EPS beat of $4.62 versus approximately $0.35 expected, while revenue rose 33.1% year over year to $1.07 billion. The stock remains highly valued, with a P/E ratio above 70 and a beta of 3.71, indicating significant volatility and valuation risk.

Affirm (NASDAQ:AFRM - Get Free Report) had its target price upped by equities researchers at BMO Capital Markets from $86.00 to $101.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. BMO Capital Markets' price objective suggests a potential upside of 30.34% from the company's current price.

Several other research firms also recently issued reports on AFRM. Zacks Research downgraded Affirm from a "strong-buy" rating to a "hold" rating in a report on Tuesday. Mizuho lifted their price objective on shares of Affirm from $95.00 to $100.00 and gave the stock an "outperform" rating in a research report on Thursday, May 14th. The Goldman Sachs Group increased their target price on Affirm from $90.00 to $106.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Citigroup reaffirmed a "market outperform" rating on shares of Affirm in a research report on Friday. Finally, Robert W. Baird lifted their price target on Affirm from $70.00 to $82.00 and gave the company a "neutral" rating in a report on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $95.19.

Affirm Stock Performance

NASDAQ:AFRM opened at $77.49 on Friday. The company has a 50-day moving average of $77.37 and a 200-day moving average of $64.50. The firm has a market cap of $25.95 billion, a price-to-earnings ratio of 70.45, a price-to-earnings-growth ratio of 3.10 and a beta of 3.71. The company has a current ratio of 11.32, a quick ratio of 11.32 and a debt-to-equity ratio of 2.39. Affirm has a twelve month low of $42.10 and a twelve month high of $100.00.

Affirm (NASDAQ:AFRM - Get Free Report) last released its earnings results on Thursday, August 27th. The company reported $4.62 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $4.27. The business had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.11 billion. Affirm had a net margin of 9.63% and a return on equity of 11.17%. The business's revenue for the quarter was up 33.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.20 EPS. Analysts forecast that Affirm will post 1.24 earnings per share for the current fiscal year.

Insider Activity at Affirm

In other Affirm news, COO Michael Linford sold 100,000 shares of the firm's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $80.04, for a total transaction of $8,004,000.00. Following the transaction, the chief operating officer directly owned 117,984 shares in the company, valued at $9,443,439.36. This trade represents a 45.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 11.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Affirm

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AFRM. Fifth Third Bancorp grew its stake in Affirm by 63.6% in the 4th quarter. Fifth Third Bancorp now owns 522 shares of the company's stock valued at $39,000 after buying an additional 203 shares during the last quarter. UMB Bank n.a. increased its position in Affirm by 36.6% during the fourth quarter. UMB Bank n.a. now owns 783 shares of the company's stock worth $58,000 after acquiring an additional 210 shares during the period. Larson Financial Group LLC grew its position in Affirm by 74.5% in the 3rd quarter. Larson Financial Group LLC now owns 499 shares of the company's stock worth $36,000 after purchasing an additional 213 shares during the last quarter. Swiss Life Asset Management Ltd raised its position in shares of Affirm by 1.1% during the fourth quarter. Swiss Life Asset Management Ltd now owns 22,296 shares of the company's stock valued at $1,659,000 after buying an additional 247 shares during the last quarter. Finally, QRG Capital Management Inc. lifted its stake in shares of Affirm by 3.6% in the first quarter. QRG Capital Management Inc. now owns 9,684 shares of the company's stock valued at $444,000 after buying an additional 340 shares during the period. Institutional investors and hedge funds own 69.29% of the company's stock.

Trending Headlines about Affirm

Here are the key news stories impacting Affirm this week:

• Positive Sentiment: Large EPS beat: Affirm reported quarterly earnings of $4.62 per share, far above the roughly $0.33–$0.35 consensus estimate and up from $0.20 a year earlier. Affirm Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Strong operating metrics: Fiscal fourth-quarter revenue increased 33.1% year over year to $1.07 billion, while gross merchandise volume reportedly exceeded expectations. Affirm also highlighted continued growth in smaller, everyday purchases, suggesting broader BNPL adoption beyond major-ticket items. Affirm Stock Jumps After Earnings
• Positive Sentiment: International expansion: Affirm and Shopify launched Shop Pay Installments in Australia. The rollout gives Affirm access to Shopify’s Australian merchant and shopper ecosystem and extends the companies’ exclusive installments partnership. Affirm and Shopify Launch Shop Pay Installments in Australia
• Neutral Sentiment: Forward outlook: Affirm’s first-quarter fiscal 2027 revenue guidance is approximately $1.2 billion, broadly in line with consensus. Investors will focus on the company’s full-year outlook and whether growth and profitability can justify the stock’s elevated valuation.
• Neutral Sentiment: Analyst support was modest: Morgan Stanley raised its price target from $79 to $80 while retaining an Equal Weight rating, implying limited near-term upside. RBC Capital Markets maintained a Hold view. Morgan Stanley Raises Affirm Price Target
• Negative Sentiment: Valuation and revenue caveat: Although profitability and transaction volume were strong, reported revenue of $1.07 billion was slightly below the $1.11 billion consensus cited in company coverage. Zacks also downgraded Affirm from Strong Buy to Hold, reinforcing concerns about valuation and execution risk. Affirm Q4 Key Metrics

About Affirm

Affirm Holdings, Inc is a financial technology company that provides point-of-sale consumer lending and payments solutions for online and in-store purchases. Its core product is a buy-now-pay-later (BNPL) platform that enables consumers to split purchases into fixed, transparent installment loans with no hidden fees. Affirm offers a range of financing options through merchant integrations, a consumer-facing mobile app and virtual card capabilities, and tools for merchants to offer alternative payment methods at checkout.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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