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.