Is Affirm Holdings, Inc. (AFRM) Stock a Buy After Goldman Sachs Raised Its Price Target?

Affirm Holdings, Inc. (AFRM) stock has shown potential for investors after Goldman Sachs increased its price target. Despite underperforming the broader market year-to-date, the company has experienced robust growth in interest-bearing loans, strategic partnerships, and Amazon volumes. Goldman Sachs raised its price target from $106 to $115 on September 12, citing improving fundamentals and impressive fourth-quarter results, including 33% revenue growth and 89 million in operating income.

Interest income rose 35%, with 80% of direct-to-consumer product loans carrying interest at quarter-end. Affirm Card active user base doubled to 5.2 million, with a 124% increase in Card GMV to $2.8 billion. Management projects significant upside with a $64 billion GMV and 30.5% adjusted operating margin in fiscal 2027. While expanding interest-bearing loans could pose risks from deteriorating credit quality, Affirm's position in the point-of-sale financing space and the competitive landscape of Buy Now Pay Later offerings warrant close monitoring of credit performance.