US$48.57 - That's What Analysts Think Affirm Holdings, Inc. (NASDAQ:AFRM) Is Worth After These Results

A week ago, Affirm Holdings, Inc. (NASDAQ:AFRM) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. It looks like a positive result overall, with revenues of US$698m beating forecasts by 5.2%. Statutory losses of US$0.31 per share were 5.2% smaller than the analysts expected, likely helped along by the higher revenues. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Affirm Holdings

Taking into account the latest results, the current consensus from Affirm Holdings' 17 analysts is for revenues of US$3.10b in 2025. This would reflect a major 23% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 61% to US$0.55. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.04b and losses of US$0.65 per share in 2025. So it seems there's been a definite increase in optimism about Affirm Holdings' future following the latest consensus numbers, with a cut to the loss per share forecasts in particular.

The consensus price target rose 6.0% to US$48.57, with the analysts encouraged by the higher revenue and lower forecast losses for next year. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Affirm Holdings analyst has a price target of US$68.00 per share, while the most pessimistic values it at US$20.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Affirm Holdings' past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 31% growth on an annualised basis. That is in line with its 28% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.0% per year. So although Affirm Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Affirm Holdings going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Affirm Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.