William Blair analyst Andrew Jeffrey has maintained their bullish stance on AFRM stock, giving a Buy rating yesterday.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Affirm Holdings’ strong position in the Buy Now, Pay Later (BNPL) market. Despite a recent rally, Affirm’s stock is still significantly below its 52-week high, presenting a potential buying opportunity. Jeffrey believes that Affirm is well-positioned for long-term growth, focusing on increasing market share and unit profitability, even if it means sacrificing short-term financial gains.
Affirm’s diversified Gross Merchandise Volume (GMV) growth, particularly through partnerships with major companies like Shopify and Amazon, underscores its expanding market presence. The company’s 0% APR loans are a unique value proposition that attracts larger merchants, enhancing Affirm’s profitability potential. Although these loans may pressure the stock due to lower current yields, they improve credit quality and customer uptake, supporting Affirm’s long-term success.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $84.00 price target.