Affirm Holdings, a leader in the buy now, pay later (BNPL) sector, saw its stock price surge over 12% following a series of analyst upgrades, notably from Wells Fargo's Andrew Bauch. Bauch raised his recommendation from equal weight to overweight, increasing his price target from $40 to $52 per share. He highlighted Affirm's competitive credit sophistication, unique funding strategies, and dynamic pricing model as key factors for its anticipated growth. Bauch identified three catalysts that could drive this growth: a partnership with Apple Pay, decreasing interest rates from the Federal Reserve, and expansion into new markets. Despite the BNPL market's previous decline, Bauch remains optimistic about a rebound as consumers are likely to spend more when borrowing costs are lower. Investors are encouraged to consider Affirm as a buy, especially in light of its recent positive analyst sentiment and market positioning.
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