Affirm's Strategy Could Evolve Beyond Walmart Deal Towards Full Financial Services, Says Bullish Analyst
Portfolio Pulse from Priya Nigam
Affirm Holdings Inc (NASDAQ:AFRM) shares have risen following the extension of its partnership with Walmart Inc (NYSE:WMT). Mizuho Securities analyst Dan Dolev maintains a bullish stance on Affirm, predicting its evolution into a comprehensive financial services firm. Dolev maintains a Buy rating and raises the price target from $30 to $65, anticipating a significant increase in GMV by fiscal 2026 due to the Affirm Card and higher GMV per user for direct deposit users. Despite the positive outlook, Affirm's shares were down 6.15% at the time of the report.
December 20, 2023 | 8:17 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Walmart's continued partnership with Affirm is acknowledged, but the short-term impact on Walmart's stock is likely to be neutral.
While the extension of the partnership with Affirm is positive, Walmart is a large diversified retailer and such partnerships are unlikely to have a significant short-term impact on its stock price.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Affirm's stock may see a positive short-term impact due to the bullish analyst rating and raised price target, despite a recent drop in share price.
The bullish outlook from a reputable analyst, including a significant price target increase, typically instills investor confidence and can lead to a positive short-term impact on the stock price. However, the recent drop in share price indicates market volatility or other factors that may temper the immediate impact.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100