Affirm Holdings (AFRM) has received a new Buy rating, initiated by BMO Capital analyst, Rufus Hone.
Rufus Hone has given his Buy rating due to a combination of factors that suggest Affirm Holdings is poised for growth. Despite a significant drop in share price, Hone anticipates a positive trajectory for the company, driven by expectations of medium-term growth in Gross Merchandise Volume (GMV) and Revenue Less Transaction Costs (RLTC). The company’s strategic partnerships, such as with Apple Pay, are expected to contribute significantly to its GMV, a factor not fully accounted for in current market expectations.
Additionally, Affirm’s position in the expanding Buy-Now-Pay-Later (BNPL) market, supported by demographic trends and its diverse product offerings, positions it well against competitors. The company’s focus on expanding its market share in e-commerce, growing its direct-to-consumer business, and entering new markets like the UK are seen as key drivers for future growth. Hone’s analysis suggests that these factors, along with a potential path to $4.00 adjusted EPS by FY2027, justify a Buy rating for Affirm Holdings.
In another report released on March 18, Compass Point also upgraded the stock to a Buy with a $64.00 price target.
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