Affirm Holdings (AFRM) stock is back over the $90 mark, thanks to its stellar Q4 performance.
Moreover, shares of this fintech company are up 40% over the past month, reflecting renewed investors’ confidence on the back of its recent partnership with Amazon (AMZN). I have a bullish outlook on Affirm stock. (See Affirm Holdings stock charts on TipRanks)
Investors’ optimism on Affirm Holdings, which offers Buy Now, Pay Later (BNPL) services, remains high. TipRanks’ Stock Investors tool indicates that investors currently have a Very Positive outlook on Affirm Holdings stock, with 15.1% of investors who hold portfolios on TipRanks increasing their exposure over the past 30 days.
Furthermore, Affirm Holdings stock has positive indicators from insiders, as well as financial bloggers. TipRanks’ Insider Trading Activity tool shows that insiders have bought Affirm Holdings shares worth $100,000 in the last three months.
TipRanks data also shows that financial bloggers’ opinions and sentiments are 81% Bullish, compared to a sector average of 72%. Overall, Affirm Holdings stock has an Outperform Smart Score of 8 out of 10.
Coming back to its Q4 performance, Affirm’s GMV (gross merchandise volume) more than doubled on a year-over-year basis. Meanwhile, the number of active merchants and consumers on its platform surged 412% and 97%, respectively.
Looking ahead, Affirm Holdings expects to benefit from the rapid expansion of its network, growth in its merchants and consumer base, and acceleration in the pace of “secular shift toward flexible and transparent financial products.”
Meanwhile, Affirm’s deals with Amazon, Walmart (WMT), and Shopify (SHOP) are expected to drive its gross merchandise volumes and user additions.
Highlighting its partnership with Amazon and Shopify, Jason Kupferberg of Bank of America Securities said that he sees increased momentum in Affirm’s non-Peloton business. Kupferberg reiterated his Buy rating, and raised his price target to $119 (29.3% upside potential) from $82.
On TipRanks, AFRM commands a Moderate Buy consensus rating, based on six Buys, three Holds, and one Sell. The average Affirm Holdings price target of $103.50 implies 12.4% upside potential to current levels.
Disclosure: On the date of publication, Amit Singh had no position in any of the companies discussed in this article.
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