J.P. Morgan analyst Reginald Smith has reiterated their bullish stance on AFRM stock, giving a Buy rating yesterday.
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Reginald Smith has given his Buy rating due to a combination of factors that highlight Affirm Holdings’ strong growth potential and strategic positioning. Smith anticipates that Affirm will surpass the Street’s FY26 GMV estimates, driven by initiatives such as the Affirm Card, international expansion, and partnerships with major platforms like Apple Pay. These initiatives are expected to contribute significantly to Affirm’s growth, supporting a premium volume growth rate of over 20% and expanding operating margins.
Furthermore, Smith notes that Affirm’s shares are currently trading at a valuation that reflects its strong business momentum and potential for increased operating leverage. The company’s partnerships with prominent e-commerce platforms like Shopify and Amazon are expected to enhance its market penetration, further boosting its financial performance. Given these factors, Smith maintains an Overweight rating with a price target of $84 by December 2026, reflecting confidence in Affirm’s ability to achieve its growth and profitability targets.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $67.00 price target.