Affirm Holdings offers attractive entry point as undervalued growth stock

What happened: Affirm Holdings, Inc. (NASDAQ:AFRM) has gained bullish sentiment from analysts and investors. As of April 2023, 27 out of 34 analysts maintain a 'Buy' rating, with an average 12-month price target of $87.50. Jim Cramer, during a discussion on Iran ceasefire, recommended Affirm over competitors. TD Cowen analyst Moshe Orenbuch, however, lowered the price target from $95 to $80 while keeping a 'Buy' rating.

Market impact: This narrative impacts the 'Buy Now, Pay Later' (BNPL) sector, with Affirm as a key player. The bullish sentiment drives interest in Affirm, potentially attracting more investors to the stock and the broader BNPL space. The price target revision, despite maintaining a 'Buy' rating, may cause some investors to reassess their positions.

What to watch next: Affirm's earnings report on May 31, 2023, will provide insights into the company's growth trajectory. The market will also watch regulatory developments around BNPL services, with Affirm's response to these changes influencing its stock performance. Additionally, any changes in analyst ratings or price targets could signal shifts in market sentiment.