10:32 AM EDT, 10/14/2024 (MT Newswires) -- Affirm Holdings ( AFRM ) is set to benefit from a lower interest rate environment, leading to lower funding costs and incremental growth in gross merchandise volume, or GMV, among others, Wedbush Securities said in a note to clients early Monday.

The company has a "balanced" risk/reward and a number of ancillary GMV growth drivers, such as its Apply Pay partnership, the Affirm Money account, and its planned expansion in the UK, according to the investment firm.

"Affirm is making progress towards its medium term adjusted operating margin targets," Wedbush added, noting that the company is ahead of its fiscal 2025 margin guidance.

Wedbush said it now estimates a fiscal 2025 loss of $0.23 per share for Affirm Holdings ( AFRM ), from its previous $0.60 loss per share forecast, and raised its fiscal 2026 earnings forecast for the company to $0.87 per share from $0.80.

Wedbush also upgraded Affirm Holdings ( AFRM ) to neutral from underperform, with a higher price target of $45 from $25.

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