From Nasdaq:

Affirm Holdings Inc (NASDAQ: AFRM) shares dropped in early trading after upbeat fiscal Q2 results. Analyst ratings and price targets were mixed. Piper Sandler and Stephens upgraded to a Buy rating with $19 and $16 price targets, respectively. Affirm attributed the performance to strong growth from its Shopify partnership.

JPMorgan reaffirmed the Neutral rating with a price target of $41. Mizuho Securities maintained a Buy rating with a price target of $65. Wedbush reiterated an Underperform rating with a $20 price target. Truist Securities reaffirmed a Buy rating and price target of $60. Goldman Sachs maintained a Neutral rating with a price target of $20. Affirm reported strong Q2 results, with GMV growth and revenue outperforming estimates across departments.

Despite the record quarter, uncertainty over guidance caused a stock sell-off. For the fiscal fourth quarter, the guidance was below consensus on GMV, leading to lower revenues.
Affirm’s solid performance was attributed to strong growth from its Shopify partnership. Revenue, adjusted operating income, and GMV growth for the second half of 2024 are expected to slow. Shopify trends and net interest income growth are expected to bode well for the company. Mizuho Securities reported “excellent” results from Affirm, with above-average growth in the last 8 quarters.

Affirm’s guidance implies a slowdown in growth for the rest of 2024. The Buy Now Pay Later market is still in its infancy stage, at less than 5% of eCommerce tender and less than 1% of carded spend. Affirm’s merchant integrations make it the Enterprise partner of choice, according to Truist Securities. Affirm’s GMV growth accelerated for the third consecutive quarter to 32% year-over-year in Q2. The Affirm Card generated around $400 million in GMV, with more than 700,000 active cardholders.

In response to the results, Affirm Holdings shares dropped to $44.21at the time of publication on Friday. The latest ratings for AFRM include Barclays maintaining Overweight, Credit Suisse maintaining Neutral, and Jefferies Downgrading from Hold to Underperform. These latest ratings can be accessed for more information. The views and opinions expressed herein do not necessarily reflect those of Nasdaq, Inc.



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