Keep an eye on Affirm Holdings (AFRM).
The buy now, pay later stock is rallying well off a recent 52-week low of $13.64, and could test $50, near-term. It’s also rebounding from oversold RSI, MACD, and Williams’ %R.
All after the company raised its revenue forecast for fiscal 2022.
The company now expects for revenue to fall in a range of $1.33 billion to $1.34 billion, which is higher than its prior estimate for $1.31 billion. Analysts were looking for $1.33 billion. Affirm also said t expects gross merchandise value of $15 billion to $15.14 billion in fiscal 2022, higher than previous expectations of about $14.8 billion.
Even better, according to CEO Max Levchin, as quoted by Barron’s, “Our plan is to achieve a sustained profitability run rate on an adjusted basis by the end of the next fiscal year. That is to say, we expect to generate revenue that consistently exceeds our adjusted operating expense starting July 1, 2023.”
Also, according to TheFly.com, “Morgan Stanley analyst James Faucette thinks Affirm’s fiscal Q3 results and commentary should reassure the market on the near-term view for funding costs, credit performance, and loan demand. Though his core thesis for Affirm’s business is largely intact and he sees the company being well positioned to continue gaining share in lending to young consumers, he thinks investors are likely to remain cautious and that it may take several quarters of consistent outperformance from Affirm for market participants to fully commit to our bullish thesis. Following the results, he is raising his FY22 and FY23 revenue estimates while keeping an Overweight rating and $80 price target on Affirm shares.”
AFRM last traded at $27.47, up $2.23 a share.