Needham raises Affirm stock price target to $100 on strong results

Needham increased its price target for Affirm Holdings (NASDAQ:AFRM) to $100 from $90, while keeping its Buy rating. The company delivered strong fourth-quarter results, surpassing analysts' expectations on both revenue and earnings. Revenue grew by 32% over the past year, reaching $4.26 billion. Both merchant and direct-to-consumer channels are experiencing rapid growth, according to Needham.

The company has been profitable for the last year, and net income is projected to continue growing this year. Needham also highlighted Affirm's robust fiscal 2027 outlook, which exceeded consensus estimates. Credit performance remains strong, driven by a resilient consumer base and transaction-based underwriting. The firm noted Affirm's expansion of its global partnership with Shopify to launch Shop Pay Installments in Australia, which will broaden the international total addressable market.

While Affirm's stock is currently considered overvalued, Needham remains impressed with the company's performance across growth, profitability, credit, and funding initiatives. The Pro Research Report suggests that Affirm is one of 1,400+ US equities covered in comprehensive research reports.