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Affirm’s Guidance Implies Slowdown In GMV Growth: 7 Analysts Examine Q2 Print

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Shares of Affirm Holdings Inc (NASDAQ: AFRM) came under pressure in early trading on Friday, after rising sharply on the company’s upbeat results for the fiscal second quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.

Piper Sandler analyst Kevin Barker maintained an Underweight rating, while lifting the price target from $14 to $19.
Stephens analyst Vincent Caintic reiterated an Underweight rating, while raising the price target from $6 to $16.
JPMorgan analyst Reginald Smith reaffirmed a Neutral rating, while raising the price target from $35 to $41.
Wedbush analyst David Chiaverini reiterated an Underperform rating and price target of $20.
Mizuho Securities analyst Dan Dolev maintained a Buy rating and price target of $65.
Truist Securities analyst Andrew Jeffrey reaffirmed a Buy rating and price target of $60.
Goldman Sachs analyst Michael Ng maintained a Neutral rating and price target of $20.

Check out other analyst stock ratings.

Piper Sandler: “This was a very good quarter for AFRM whereby the company produced a broad-based beat relative to our estimates on various metrics, including GMV growth, revenue, and RTLC margins,” Barker wrote in a note. The company attributed the performance to strong growth from its Shopify (NYSE: SHOP) partnership and continued growth in transactions per customer, he added.

“However, guidance for 2H24 implies revenue growth, adjusted operating income growth and GMV growth will slow from the first half of the year,” the analyst further stated.

Stephens: “F2Q24 results beat estimates across top- and bottom-line items, F3Q24 guidance is also higher than consensus estimates,” Caintic wrote in a note.

Investors punished the stock as the fiscal fourth quarter guidance is 5% below consensus on GMV, “leading to 2% lower on revenues,” the analyst stated.

He added, however, that “the BNPL holiday sales gains (Affirm beat F2Q24 guidance by $700m) translated into meaningful sticky GMV for the rest of the year (Full-Year F2024 guidance raised $1 billion).”

JPMorgan: Affirm Holdings reported a “record” quarter, “handily beating guidance and Street estimates on all key metrics,” Smith said.

“AFRM has a track record of beats, but we were especially encouraged by Shopify…

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