Affirm cut to neutral on valuation concerns, modest growth risks

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Investing.com -- SIG downgraded Affirm Holdings (NASDAQ:AFRM) Inc to "Neutral" from "Buy" on valuation limits after the stock hit its $57 price target.

The brokerage expressed confidence in Affirm’s long-term potential in the buy now, pay later space but flagged concerns over holiday spending data, which suggested BNPL growth may have slowed year-over-year.

SIG trimmed estimates for Affirm's gross merchandise volume, highlighting risks of short-term softness.

However, analysts noted upside potential if Affirm gains market share faster or secures a major international merchant partnership.

The price target remains at $57, with upside risk up to $70. Affirm reports Q2 2025 results on February 6.

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