Analyst James Faucette from Morgan Stanley maintained a Hold rating on Affirm Holdings (AFRM – Research Report) and decreased the price target to $60.00 from $65.00.
James Faucette’s rating is based on a combination of factors that suggest a cautious yet optimistic outlook for Affirm Holdings. Despite the macroeconomic volatility that poses risks to credit performance, Affirm’s delinquency data remains strong, and insights from other consumer finance companies are generally positive. This suggests that a significant increase in reserves is unlikely in the near term.
Additionally, the stock’s recent decline presents an opportunity, as Affirm has operational leverage to counteract potential negative impacts from recent developments, such as the Walmart announcement. Furthermore, Affirm’s growth prospects are supported by several factors not fully accounted for in current estimates, including partnerships with Apple Pay and expansion into new markets like the UK. The company’s ongoing development of app features, particularly its focus on 0% offers, is expected to attract and retain higher-income users, providing a positive outlook for the future.
According to TipRanks, Faucette is a 5-star analyst with an average return of 5.0% and a 63.47% success rate. Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Affirm Holdings.