Diamond Member Pelican Press 0 Posted May 9, 2024 Diamond Member Share Posted May 9, 2024 ‘Not letting a good sell off go to waste’ Investors shouldn’t be spooked by Affirm ‘s post-earnings sell-off, according to JPMorgan. Analyst Reginald Smith upgraded the buy-now-pay-later stock to overweight from neutral on Thursday, a day after the stock dropped following its latest earnings report. Smith also hiked his price target by $2 to $43, which now implies 36% upside from Wednesday’s close. As Smith put it in the headline of his upgrade to clients, we’re “not letting a good sell off go to waste.” Affirm reported $576 million in revenue for the fiscal third quarter, topping the consensus forecast of $550 million from analysts polled by FactSet. The company also issued strong current-quarter guidance for revenue and ****** merchandise volume, which is the total dollar amount of all transactions made through Affirm. Despite those numbers, shares dropped 9.5% in the session following the report. Smith said that’s less tied to its own performance, and instead connected to business partner This is the hidden content, please Sign In or Sign Up ‘s drop of more than 18% on the back of management commentary around revenue growth headwinds in the current quarter. A Bloomberg report on Tuesday that talked about the lack of disclosure around debt consumers have on delayed payment platforms could also be contributing to Affirm’s poor performance, Smith said. AFRM SHOP 1D mountain Affirm vs. This is the hidden content, please Sign In or Sign Up , 1 day But Smith pointed to Shop Pay, which houses Affirm’s financing solutions, seeing another quarter of more than 50% volume growth as a good sign. And with shares now down more than 35% on the year, he sees an opportunity for investors to buy. “The notion people are prioritizing BNPL repayment is actually good for companies like AFRM,” he said, “and, we believe, speaks to the perceived utility of the product.” Affirm popped 3.8% before the bell on Thursday. Smith acknowledged that the stock is considered “extremely volatile.” This is the hidden content, please Sign In or Sign Up Investment strategy,Stock markets,Affirm Holdings Inc,JPMORGAN DRN,Earnings, This is the hidden content, please Sign In or Sign Up Inc, This is the hidden content, please Sign In or Sign Up Inc,business news #letting #good #sell #waste This is the hidden content, please Sign In or Sign Up 0 Quote Link to comment https://hopzone.eu/forums/topic/29064-%E2%80%98not-letting-a-good-sell-off-go-to-waste%E2%80%99/ Share on other sites More sharing options...
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