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Investing.com - Wolfe Research initiated coverage on Affirm Holdings Inc. (NASDAQ:AFRM) with a Peerperform rating on Tuesday, setting a year-end 2026 fair value range of $72-$82.
The research firm’s analysis comes as Affirm stock has gained 12% year-to-date, outperforming the Wolfe FinTech Index which is down 21%, but underperforming the S&P 500’s 16% rise during the same period.
Wolfe Research projects Affirm’s fiscal year 2026 revenue less transaction costs (RLTC) at $1.95 billion, slightly above the Street consensus of $1.92 billion, with adjusted operating income of $1.14 billion and GAAP earnings per share of $0.99.
The firm’s valuation model applies a 37-41x multiple to its calendar year 2027 EPS estimate of $1.99, noting that Affirm currently trades at 64x next-twelve-month GAAP EPS, below its one-year median of 99x. InvestingPro subscribers can access Affirm’s detailed Fair Value assessment, along with over 30 financial metrics and a comprehensive Pro Research Report that transforms complex data into actionable intelligence.
Wolfe Research acknowledged Affirm’s strong execution on profitability improvements and growing momentum in key initiatives including 0% APR installment loans, Affirm Card, and international expansion, but indicated it awaits "a more attractive entry point before becoming incrementally constructive."
In other recent news, Affirm Holdings Inc. has been the subject of several analyst updates following its fiscal first-quarter earnings report. Truist Securities maintained a Buy rating but adjusted its price target to $85, citing lower comparable company multiples despite raising performance estimates. Evercore ISI also reduced its price target to $95 while maintaining an Outperform rating, noting that Affirm exceeded expectations in all key metrics. Meanwhile, Morgan Stanley lowered its price target to $83, maintaining an Equalweight rating, and observed that concerns about discretionary spending and credit issues were overstated. RBC Capital adjusted its target to $87, retaining a Sector Perform rating, and highlighted Affirm’s expanded relationship with Amazon as a positive indicator of consumer engagement. Freedom Capital Markets initiated coverage with a Buy rating and a $90 target, recognizing Affirm as a leader in the Buy Now Pay Later market with plans for international growth. These developments reflect a range of perspectives on Affirm’s performance and future prospects.
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