Affirm Holdings is gaining a competitive edge in the "buy now, pay later" (BNPL) market, prompting BofA Securities to raise its price target for the stock from $50 to $74, while maintaining a Buy rating. Analysts highlight Affirm's impressive growth in gross merchandise value, which surpasses competitors like Klarna and Block's Afterpay. The company's strong financial performance, including revenue growth after transaction costs and improving credit metrics, positions it favorably in the market. Affirm's partnerships with major retailers such as Amazon, Shopify, and Walmart, along with its diverse loan offerings, set it apart from its rivals. The analysts predict that the BNPL model will continue to capture market share within e-commerce, especially with Affirm being the only publicly traded pure-play BNPL provider. The recent announcement of a partnership with Apple Pay is expected to further enhance growth prospects. Affirm's stock has already seen a significant increase of over 40% this year.
Read the full article here.