Home News Shares of Affirm Holdings Inc. Rise on Price Target Increase

Shares of Affirm Holdings Inc. Rise on Price Target Increase

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Shares of Affirm Holdings Inc. (AFRM) experienced a surge of more than 8% during midday trading on Thursday. This boost followed Barclays analyst Ramsey El-Assal’s decision to raise his price target for the buy-now-pay-later stock from $16 to $19. El-Assal was optimistic about Affirm’s upcoming June-quarter earnings report, stating that he doesn’t anticipate any major surprises. However, he did express some concerns about overly optimistic expectations for revenue less transaction costs.

El-Assal further emphasized that despite these concerns, the current consumer backdrop is proving to be more favorable than initially anticipated. This bodes well for Affirm, which he believes will emerge as a winner in its industry throughout various economic cycles. Reiterating an overweight rating on the shares, El-Assal emphasized that he will be closely monitoring the company’s progression towards achieving profitability.

The recent announcement of Affirm’s divestiture of Returnly indicates the company’s proactive approach to making strategic adjustments in order to enhance core profitability. This move showcases Affirm’s dedication to driving sustainable success.

Although Affirm’s shares have already experienced an impressive 84% growth year-to-date, they have experienced a slight dip of 5% over the past month.

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