Affirm’s Weak Guidance Hits the Stock. Why This Analyst Upgraded the Shares.
Updated May 09, 2025, 12:51 pm EDT / Original May 09, 2025, 8:01 am EDT
Affirm Holdings stock plunged on Friday after the buy now, pay later company issued weak fiscal fourth-quarter guidance. However, one analyst believes Affirm’s “various lanes of growth” will boost the share price even higher.
While Affirm’s fiscal third-quarter earnings topped analysts’ estimates, a conservative outlook for the current quarter appeared to be weighing on shares, which had fallen 13% in afternoon trading. The benchmark S&P 500 was down 0.2%. PayPal Holdings one of Affirm’s payment processing peers, was down 0.3%.
Management guided for fourth-quarter revenue in the range of $815 million to $845 million. Analysts polled by FactSet had forecast revenue of $841.4 million before earnings were released, above the midpoint of the range.
Even as shares tumbled, Susquehanna analyst James Friedman upgraded the stock to Positive from Neutral with a $65 price target. He noted that through Thursday’s close Affirm shares have fallen 33% from their peak in February and remain down 13% this year.
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