Affirm: Superior BNPL Model, Strong Underwriting, and Structural Advantages Support Buy Rating

William Blair analyst Andrew Jeffrey has reiterated their bullish stance on AFRM stock, giving a Buy rating on February 17.

Andrew Jeffrey has given his Buy rating due to a combination of factors that, in his view, distinguish Affirm from its closest BNPL rival, Klarna. He points to Affirm’s broader product set, higher-quality merchant relationships, and more robust liquidity as structural advantages that should allow the company to capitalize on a still‑early U.S. BNPL market and outperform over time.

He also emphasizes Affirm’s stronger, data‑driven underwriting, evidenced by stable loss and delinquency metrics, a steadily increasing loan‑loss reserve, and a business mix that is already predominantly interest‑bearing rather than newly shifting in that direction. In contrast to Klarna’s more volatile results and heavier exposure to a single large merchant, Jeffrey believes Affirm’s model offers greater durability and long‑term profitability, supporting his view that the shares should outperform both Klarna and the broader market.

Jeffrey covers the Technology sector, focusing on stocks such as Affirm Holdings, Corpay Inc, and WEX. According to TipRanks, Jeffrey has an average return of 10.5% and a 59.35% success rate on recommended stocks.

In another report released on February 17, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a $55.00 price target.