Shares of Affirm Holdings (AFRM) are up 6% after the price target on the stock of the buy now, pay later company was raised at Bank of America.
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Analyst Jason Kupferberg at Bank of America Securities raised his price target on AFRM stock to $74 a share from $50 previously and reiterated a Buy rating. In a note to clients, Kupferberg said that Affirm continues to perform well in the buy now, pay later space and is besting competitors such as privately held Klarna and Block (SQ).
“AFRM’s enviable roster of merchants (i.e., Amazon (AMZN), Shopify (SHOP), Walmart (WMT)) and diversified loan products remain a differentiator,” wrote Kupferberg. “Given these dynamics, we see upside potential to near-term estimates.”
The Growth of BNPL
The analyst also remains bullish on the entire buy now, pay later space, or BNPL as it is often called. Kupferberg said he expects BNPL to continue growing and taking market share within the broader e-commerce sector.
He adds that Affirm is a great choice for investors as it is, “the only pure-play publicly traded BNPL provider” in the market right now. Going forward, Affirm should benefit from catalysts that include a partnership with Apple (AAPL) Pay that was announced this September.
AFRM stock has gained 40% this year.
Is AFRM Stock a Buy?
Affirm Holdings stock has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on eight Buy and nine Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average AFRM price target of $52.73 implies 23.99% upside from current levels.
