Affirm Shares Jump After Beating Fiscal Fourth-Quarter Expectations

Affirm Holdings reported fiscal fourth-quarter results on Thursday that surpassed Wall Street expectations, triggering a 13% increase in premarket trading on Friday. The San Francisco-based fintech company issued a revenue forecast for the current quarter between $1.19 billion and $1.22 billion, beating the $1.16 billion estimate from FactSet analysts.

Bank of America responded to the performance by maintaining a buy rating and raising its 12-month price target for Affirm shares from $93 to $104. The financial institution identified brand-sponsored promotions and the potential acquisition of a bank charter as primary catalysts for future stock growth.

Bank of America analyst Matthew O'Neill noted that the company is supplementing its core growth with unmodeled vectors, suggesting that management continues to provide conservative guidance while the actual growth algorithm tracks ahead of those floors.