Goldman Sachs Raises Target Price for Affirm Holdings Stock Amid Bullish Outlook

Goldman Sachs has increased its target price for Affirm Holdings (AFRM) from $106 to $115, implying a potential upside of 69%.

The bank cites robust growth in Affirm's interest-bearing loans, the continued development of the Affirm Card, and accelerating volumes at Amazon as reasons for its optimism.

Affirm's fiscal fourth-quarter results showed a 30% year-over-year increase in interest income, with the average amount of loans retained for investment increasing by 33%.

The company is also making money by selling loans to investors, with gains on sales of loans jumping 41% due to a 26% increase in the number of loans sold and better pricing on those sales.