Affirm Holdings Stock Rises Pre-Market After JPMorgan Hikes Price Target: Retail Wary Of High Valuation

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.

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).

AFRM’s Sentiment Meter and Message Volume as of 6:54 a.m. ET on Dec. 2, 2024 | Source: Stocktwits

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%.

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