Needham analyst Kyle Peterson upgraded the rating on Affirm Holdings to a Buy today, setting a price target of $100.00.
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Kyle Peterson has given his Buy rating due to a combination of factors tied to Affirm’s application to create its own Nevada-chartered industrial loan company, Affirm Bank. In his view, securing a banking license would allow Affirm to tap customer deposits as a lower-cost, more stable source of funding for its lending activities, which could enhance margins and financial flexibility. He also expects that bringing more lending and related services in-house would lessen dependence on external banking partners, thereby reducing counterparty risk and operational complexity.
Furthermore, Peterson believes that controlling more of the financial stack could speed up Affirm’s innovation cycle, enabling faster rollout of new products and potentially driving higher growth. The combination of improved funding economics, reduced third-party exposure, and an enhanced ability to innovate leads him to hold a more constructive view on Affirm’s medium-term trajectory for both growth and profitability. Reflecting this improved outlook, he upgrades the stock to Buy and sets a $100 price target, indicating meaningful upside from current levels.
In another report released on January 20, Evercore ISI also maintained a Buy rating on the stock with a $95.00 price target.