Affirm Holdings Stock Rises Pre-Market After JPMorgan Hikes Price Target: Retail Wary Of High Valuation
By Stocktwits Inc | First Published Dec 2, 2024, 6:39 PM ISTThe brokerage noted that lower benchmark rates and an improved third-party funding environment should lead to a rise in loan origination volume and better margins for fintech players in 2025.
Shares of financial services firm Affirm Holdings Inc ($AFRM), which provides buy-now-pay-later loans, were up nearly 3% in Monday’s pre-market session after JPMorgan reportedly raised its price target on the stock to $74 from $56 while keeping an ‘Overweight’ rating.
The brokerage noted that lower benchmark rates and an improved third-party funding environment should lead to a rise in loan origination volume and better margins for fintech players going into 2025.
Latest Videos
JPMorgan noted that Shopify Inc ($SHOP) and Affirm are growing revenue and volume at or above the COVID-19 pandemic levels and are "defying broader e-commerce trends.”
Affirm Holdings stock has grown over 60% just over the last month. Although JPMorgan upgraded its price target to $74, retail investors on Stocktwits appeared less enthused because the stock is already trading near the $71 level.
On Monday morning, retail sentiment on Stocktwits continued to trend in the ‘bearish territory’ (40/100).
Most Stocktwits users believe the shares could be headed lower in the coming times.
However, some also expressed hopes of a rally in the near term.
The firm recently reported first-quarter results, which topped Wall Street estimates. Affirm reported a loss of $0.31, better than a feared $0.35 loss. Revenue came in at $698 million, beating an analyst estimate of $664 million.
Notably, much of the stock's gains came in the last month. On a year-to-date basis, the stock is up over 50%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.