Affirm Holdings Surges as It Gets a 'Buy' Rating From Goldman Sachs
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2151491695-20ff00e7ed98413ba44851fb629e6c95.jpg)
Gabby Jones / Bloomberg via Getty Images
Key TakeawaysAffirm Holdings shares soared in intraday trading Monday as Goldman Sachs initiated coverage with a "buy" rating on the stock, with a price target 41% above Friday's close.Goldman said the buy now, pay later (BNPL) firm is “the leading provider of modern credit solutions for consumers.”The analysts also praised Affirm's underwriting.
Shares of Affirm Holdings (AFRM) jumped in intraday trading Monday as Goldman Sachs initiated coverage of the buy now, pay later (BNPL) loan service with a "buy" rating, calling it “the leading provider of modern credit solutions for consumers.”Goldman also set a price target of $42, a 41% premium to the closing price Friday.Goldman Analysts Impressed With Sophistication of Affirm's UnderwritingThe analysts noted that Affirm had “a diverse portfolio of products for point of sale financing, and every day spending,” and that they were particularly impressed with the sophistication of its underwriting compared with other financial technology (fintech) companies. They added that they liked how the firm had a “strong track record of achieving well managed credit outcomes despite growing faster than peers.”The analysts pointed out that Affirm’s solid underwriting will allow it to increase its reach with subprime and near-prime borrowers, which it noted is a market that’s been hard for many lenders to “sustainably participate in.” They also listed as positives rising overall demand for BNPL and Pay-in-4 offerings and Affirm’s strong distribution with major e-commerce platforms. They concluded that all of those “should drive strong market share gains and provide a path towards AFRM becoming one of the first new closed-loop platforms in the payments ecosystem.”Affirm Holdings shares jumped roughly 9% to $32.59 as of 1:15 p.m. ET Monday but are about 34% lower year-to-date.
TradingView
Read the original article on Investopedia.
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings