Fintech company Affirm Holdings (NASDAQ: AFRM) tanked at the time of publishing. This can be attributed to a downgrade from top-rated Piper Sandler analyst Kevin Barker, who dropped his rating on the stock to a Sell from a Hold and reiterated a price target of $11, implying a significant drop from current levels.
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The analyst expects that persistently high-interest rates are likely to pressure the company’s operating margins. Barker stated that AFRM could see its revenue growth slow down over the next year due to more stringent underwriting standards, higher pricing, and the re-introduction of student debt payments. As a result, the analyst anticipates that it may be difficult for AFRM to generate a revenue growth rate of 24%, as implied by Street estimates.
Is Affirm Stock a Buy or Sell?
Overall, analysts remain sidelined about AFRM stock with a Hold consensus rating based on four Buys, six Holds, and three Sells.
