Analyst David Scharf from JMP Securities maintained a Buy rating on Affirm Holdings (AFRM – Research Report) and increased the price target to $85.00 from $78.00.
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David Scharf has given his Buy rating due to a combination of factors that highlight Affirm Holdings’ strong performance and growth potential. One of the main reasons is the company’s ability to achieve GAAP profitability ahead of schedule, demonstrated by their impressive fiscal 2Q25 results which exceeded expectations in various financial metrics such as gross merchandise volume, revenue less transaction costs, and operating income. This early profitability underscores the business’s potential at scale.
Moreover, Scharf sees Affirm as a promising player in the fintech space, particularly in the BNPL (Buy Now, Pay Later) sector, which is expected to capture market share from traditional credit cards. The company’s strategic partnerships, geographic expansion, and robust loan platform position it well for future growth. Additionally, favorable credit and macroeconomic conditions, along with sustainable funding advantages, further support the positive outlook for Affirm Holdings.
In another report released on January 28, BTIG also maintained a Buy rating on the stock with a $81.00 price target.