Needham analyst Kyle Peterson has maintained their neutral stance on AFRM stock, giving a Hold rating on January 28.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Kyle Peterson has given his Hold rating due to a combination of factors that reflect both positive developments and cautious considerations for Affirm Holdings. The company’s recent quarterly performance exceeded market expectations, showing impressive growth and efficient management of credit costs and SG&A expenses. Key positives include a reduction in the loan loss reserve ratio and increased gain on sale revenue, driven by higher loan sale volumes and better margins.
Despite these positive indicators, Affirm’s stock is trading at a high price-to-earnings ratio compared to its peers, even after considering its growth prospects and unique offerings. This valuation premium suggests that the stock might be overvalued, leading Peterson to adopt a more cautious approach. Therefore, while recognizing the company’s achievements, he opts to maintain a Hold rating, indicating a wait-and-see stance before making further investment recommendations.
In another report released on January 28, Morgan Stanley also maintained a Hold rating on the stock with a $55.00 price target.