Affirm Holdings is set to rise as several factors align, making it a prime addition to investors' portfolios, according to Bernstein:
The investment firm initiated coverage of Affirm with an outperform rating and a price target of $100 per share, implying a 34% upside:
“Affirm, in our view, is at a unique intersection of several tailwinds - expanding total addressable market (TAM), compounding network effects, and several optionalities,” analyst Harshita Rawat said:
She noted that one of the biggest drivers of upside to Affirm may be its opportunity to serve the “sizable” and “constantly evolving” buy now, pay later market:
BNPL accounts for just about 5% of e-commerce sales in the U.S., in addition to 1% of overall card spend, according to Bernstein:
However, the payment method is poised to gain traction among shoppers in the U.S., particularly as e-commerce giants such as Amazon and Shopify leverage BNPL to drive greater conversion and order values:
Bernstein's call falls in line with consensus on the Street. Of the 34 analysts covering Affirm, 25 have a buy or strong buy rating on the stock:
