Affirm Holdings (AFRM) PT Raised to $80 at Compass Point
Compass Point analyst Giuliano Bologna raised the price target on Affirm Holdings (NASDAQ: AFRM) to $80.00 (from $68.00) while maintaining a Buy rating.
The analyst commented: "On 5/12, following 3Q26 earnings, AFRM hosted an Investor Forum outlining its long-term strategy, product roadmap, and medium-term financial framework, reinforcing our confidence in the company’s growth outlook alongside disciplined credit risk management. Management updated its medium-term targets to include RLTC of 3.75%–4%, GAAP operating margins of 20%–25%, adjusted operating margins of 30%–35% at $100B GMV, and $3–$4 GAAP EPS, which notably excludes contributions from emerging drivers such as agentic commerce and AI partnerships given their early stage, leaving potential upside as these initiatives scale. The key takeaway in our view is that AFRM is executing extremely well, above expectations and that trend is likely to continue.
We are raising our price target on Affirm to $80 (from $68) based on 20x FY29E GAAP EPS of $3.98. Since AFRM has a June 30 fiscal year and FY29 is ~3-years forward. AFRM We believe it is worth noting that AFRM also called for annual dilation of under 3% and in our model, we assume AFRM will have $419M of SBC in FY29, given the low expected dilution, this brings up a relevant argument that AFRM should be views on an Adj. EPS basis (adding back SBC). Our FY29E Adj. EPS is $5.09 and AFRM trades at ~12.5x and our new $80 PT implies 15.7x."