Affirm’s Q2 Beat Fuels Profit Hopes, Analyst Says Guidance Much Better Than Expected
Affirm Holdings Inc (NASDAQ:AFRM) shares climbed Thursday after the company reported strong fourth-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
JPMorgan on Affirm Holdings
Analyst Reginald Smith reiterated an Overweight rating, while raising the price target from $46 to $47.
Affirm’s GMV (gross merchandise value) grew by 31% year-on-year, beating Street expectations of 30%, Smith said in a note. Although this marked a five percentage point decline sequentially, it was consistent with other e-commerce and payment companies, he added.
The company reported a GAAP net loss of $45 million, “primarily burdened by nearly $180M of stock comp and warrant costs,” the analyst wrote. Management expects GAAP profitability by the fiscal fourth quarter, which seems achievable “on continued operating leverage and lessening warrant expense burden beginning in C1Q25,” he further stated.
Check out other analyst stock ratings.
Goldman Sachs on Affirm Holdings
Analyst Will Nance maintained a Buy rating while lifting the …
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