Affirm (AFRM) Rating Upgraded to Hold by Jefferies Analyst

Jefferies's John Hecht upgraded their rating on Affirm (NASDAQ: AFRM) from Sell to Hold on 2023/11/28. The analyst also raised their price target by 215.8% from $9.50 to $30.

In explaining the upgrade and revised price target, Hecht acknowledged that Affirm's stock has experienced a decline of 50% since February 2022. However, the analyst noted that many of the factors that led to their previous Sell rating have now played out.

Hecht outlined several reasons for the new Hold rating. Firstly, there is recent evidence of stabilizing cost of capital and capital markets activity. Additionally, the credit performance of the company is stabilizing, if not improving. Lastly, there is ongoing momentum in adoption rates for the buy now pay later model, which Affirm specializes in.

According to data from top-rated analysts, 25% currently rate AFRM as a Strong Buy or Buy, while 50% consider it a Hold. The remaining 25% either recommend or strongly recommend selling the stock.

Looking at AFRM's performance since its last quarterly report on September 30, 2023, the stock price has risen by 38.1%. Over the past year, the stock has seen a significant increase of 133.5%. During this period, AFRM has outpaced the broader market, with the S&P 500 up 14.9%.

It's worth noting that Jefferies analyst John Hecht ranks in the bottom 9% out of 4,414 Wall Street analysts, according to WallStreetZen. He has an average return of -11.9% and a win rate of 42.1%. Hecht specializes in analyzing the Technology and Financial Services sectors, among others.

Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States and Canada. The company offers a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. Through its payments network and partnership with an originating bank, Affirm enables consumers to make purchases and pay over time with flexible terms ranging from one to forty-eight months.

As of June 30, 2021, the company had integrated approximately 29,000 merchants on its platform, spanning small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and various industries such as sporting goods, furniture, travel, apparel, electronics, and jewelry. Affirm Holdings was founded in 2012 and is headquartered in San Francisco, California.

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