William Blair analyst Andrew Jeffrey has reiterated their bullish stance on AFRM stock, giving a Buy rating on November 19.
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Andrew Jeffrey has given his Buy rating due to a combination of factors, primarily highlighting Affirm’s leadership in the Buy Now, Pay Later (BNPL) sector. Despite current market uncertainties and fears surrounding private credit, Jeffrey sees Affirm as a dominant player with robust technology, strong partnerships, and effective data-driven underwriting. The company’s diverse funding sources and ample equity position it well to navigate cyclical market fluctuations.
Moreover, Jeffrey points out that BNPL products, such as those offered by Affirm, are positioned as consumer-friendly alternatives to traditional credit cards, which often burden users with high fees and debt. The short-duration nature of BNPL loans allows Affirm to quickly adapt to changing economic conditions, maintaining its growth trajectory. While there might be short-term pressures on growth metrics, Jeffrey believes that the market’s understanding of these dynamics will mitigate the impact on Affirm’s stock performance.
In another report released on November 19, Truist Financial also maintained a Buy rating on the stock with a $85.00 price target.