TD Cowen analyst Moshe Orenbuch maintained a Buy rating on Affirm Holdings today and set a price target of $115.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors that highlight Affirm Holdings’ strong financial performance and growth prospects. The company reported earnings per share that exceeded both his and the consensus estimates, driven by robust growth in gross merchandise volume and revenue. Affirm’s guidance for future growth remains optimistic, with expectations of over 25% GMV growth for fiscal year 2026, alongside the continued expansion of the Affirm card, which is enhancing offline spending penetration.
Furthermore, Affirm’s revenue surpassed estimates across various streams, including merchant network revenue and interest income, indicating a stronger-than-anticipated platform growth. Although there were higher processing and servicing costs due to increased volume, credit losses were slightly better than expected. The company benefits from operating leverage, resulting in better-than-expected adjusted operating income. Affirm’s strategic focus on 0% APR monthly installments and international expansion, particularly in the UK and potentially other European countries, positions it as a strong competitor in the market. These factors contribute to the positive outlook and the increased price target of $115.
Orenbuch covers the Financial sector, focusing on stocks such as SLM, Bread Financial Holdings, and American Express. According to TipRanks, Orenbuch has an average return of 24.0% and a 72.54% success rate on recommended stocks.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $105.00 price target.