Affirm Holdings Surpasses Analyst Target Price, Investors Reassess Strategy
Shares of Affirm Holdings Inc (Symbol: AFRM) recently traded at $62.51, exceeding the average analyst 12-month target price of $62.00. When a stock reaches an analyst’s target, they may either downgrade due to valuation or raise their target to reflect improved expectations. This reaction often hinges on the underlying business developments that have boosted the stock price.
Within the Zacks coverage universe, 17 different analyst targets factor into the average for Affirm Holdings Inc. It is essential to highlight that while the average is a useful reference, individual analyst predictions can vary significantly. For instance, one analyst has set a target as low as $20.00, while another has an optimistic target of $82.00. The standard deviation among these projections stands at $18.466.
The rationale for considering the average price target lies in the “wisdom of crowds.” This method combines insights from various analysts, providing a broader perspective rather than relying solely on a single expert’s forecast. With AFRM now above the average price target of $62.00/share, it signals a crucial moment for investors to evaluate their positions. They must determine if $62.00 marks a potential jump toward even higher profits or if the stock’s valuation has become too rich, prompting them to consider cutting back on their holdings. Below is the current breakdown of analyst ratings for Affirm Holdings Inc:
| Recent AFRM Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 10 | 8 | 8 | 5 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 7 | 9 | 9 | 10 |
| Sell ratings: | 0 | 0 | 0 | 1 |
| Strong sell ratings: | 1 | 1 | 1 | 2 |
| Average rating: | 2.0 | 2.22 | 2.22 | 2.71 |
The average rating is calculated on a scale from 1 to 5, where 1 indicates a Strong Buy and 5 signifies a Strong Sell. Data for this article was provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on AFRM, visit their website.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
