Affirm Holdings: A Leading BNPL Player with Strong Market Position and Growth Potential

William Blair analyst Andrew Jeffrey has maintained their bullish stance on AFRM stock, giving a Buy rating on June 2.

Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Affirm Holdings’ strong market position and growth potential. Despite the stock’s significant rally, it remains below its 52-week high, presenting an attractive entry point for investors. Affirm is seen as a leading player in the rapidly expanding buy now, pay later (BNPL) market, which is poised to transform consumer credit. The company’s focus on long-term share growth and unit profitability, along with its impressive 0% APR volume growth, suggests a promising outlook for higher long-term returns on invested capital.
Moreover, Affirm’s substantial market share, accounting for a significant portion of the U.S. BNPL gross merchandise volume and industry revenue, underscores its extensive reach. The company’s ability to maintain strong credit outcomes through proprietary underwriting and robust credit controls further enhances its appeal. Additionally, the successful adoption of the Affirm Card broadens its product reach, allowing BNPL transactions wherever Visa is accepted, thereby expanding its total addressable market significantly.

In another report released on June 2, Truist Financial also initiated coverage with a Buy rating on the stock with a $58.00 price target.