Morgan Stanley Optimistic About Affirm's Upcoming Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Should l Buy AFRM?
Source: CNBC
Affirm Holdings Inc. shares rose 5.01% and reached a 5-day high amid positive market conditions.
Morgan Stanley anticipates that Affirm will exceed gross merchandise volume expectations in its upcoming earnings report next month and may raise its margin and earnings per share targets at its investor day, despite a 14% drop in its stock in 2026. This optimism reflects a strong earnings season start, with 82% of S&P 500 companies exceeding expectations, boosting investor confidence.
The positive outlook from Morgan Stanley suggests that Affirm's performance could align with broader market trends, potentially leading to further gains as investor sentiment improves.
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Analyst Views on AFRM
Wall Street analysts forecast AFRM stock price to rise
22 Analyst Rating
17 Buy
5 Hold
0 Sell
Strong Buy
Current: 67.540
Low
65.00
Averages
87.72
High
107.00
Current: 67.540
Low
65.00
Averages
87.72
High
107.00
About AFRM
Affirm Holdings, Inc. provides consumers with an alternative to traditional payment options. The Company is engaged in building a payment network. Its platform comprises three core elements: point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app. Its Affirm App and Website provide tailored offers from merchants based on consumers' preferences. Consumers can apply at affirm.com or via the Affirm App and, upon approval, receive a single-use virtual card to use online or in-store. Its Affirm Card allows consumers to link a bank account to pay in full, or apply to pay overtime through the Affirm App. It offers users an in-app post-purchase feature that allows them to instantly apply to convert any eligible debit transaction into an installment loan. Through the Affirm app and in partnership with Cross River Bank, it offers a savings account, with no minimum deposit requirements or fees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Semiconductor Expertise: Banerjee has advised on nearly a dozen marquee semiconductor transactions at Bank of America, including the restructuring of Renesas' $2.1 billion investment in Wolfspeed, showcasing his deep background and influence in the semiconductor sector.
- Internet Investment Banking Leadership: Milani, who led the internet investment banking division at Bank of America, worked on M&A and financing deals for notable companies like DoorDash and Unity Software, and is expected to drive JPMorgan's strategic initiatives in AI.
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- Bullish Call Trends: Specifically, the $75 strike call option expiring on May 15, 2026, has recorded a trading volume of 6,111 contracts today, equivalent to about 611,100 shares, indicating a bullish sentiment among investors regarding AFRM's future performance.
See More
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- Price Target Increase: The firm reiterated its ‘Overweight’ rating on Affirm and set a price target of $76, implying a 26% upside from Thursday's closing price, indicating strong bullish sentiment towards the stock.
- Sentiment Shift: Driven by high message volume, retail sentiment around Affirm shifted from ‘bullish’ to ‘extremely bullish’, reflecting investor optimism about its future performance, with the stock rising over 6% on Friday afternoon.
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