Affirm Holding Inc (AFRM: NSD) stock price surged after the announcement of a major partnership with tech giant Apple (AAPL: NSD). The deal will see Affirm integrated into Apple Pay, allowing users to split purchases into installments. This news has investors wondering: is now the time to buy Affirm stock?
Stock Target Advisor’s Analysis on Affirm:
Stock Target Advisor gives Sell ratings to Affirm stock. The consensus among analysts also echoes a similar sentiment with an average target price of $38.44 and an average analyst rating of ‘Hold.’
Affirm boasting a 1-year change of +109.80% and a weekly change of +4.75% prompts Stock Target Advisor to assume a bearish stance on Affirms future. Constructive signal analyses identified positive cash flow and a high market capitalization. However, it concurrently cites the negatives— high volatility, poor risk-adjusted returns, and its overpriced nature on a cash flow basis with negative free cash flow, all underpinning Affirm highly leveraged position.
The Bottom Line:
The Apple partnership is a positive development for Affirm, but it’s not a guaranteed path to success. Carefully consider the factors mentioned above before deciding whether to invest in Affirm stock.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
