In a report released today, Dan Dolev from Mizuho Securities maintained a Buy rating on Affirm Holdings (AFRM – Research Report), with a price target of $65.00.
Dan Dolev has given his Buy rating due to a combination of factors that mitigate the concerns surrounding Affirm Holdings. Despite the news that Walmart has begun offering Buy Now, Pay Later (BNPL) loans in-store through “One,” Dolev believes the market’s reaction is overstated. He emphasizes that this development is not recent news—it was already reported in late 2022, and similar past events that seemed to threaten Affirm’s business have actually turned into advantageous buying moments. Furthermore, Dolev estimates that Walmart transactions represent a mere 5% of Affirm’s Gross Merchandise Value (GMV), suggesting a limited impact on Affirm’s overall business.
Additionally, Dolev argues that the BNPL market, which Affirm operates in, has a vast total addressable market (TAM) that stretches into the trillions of dollars, implying ample growth potential for Affirm. The introduction of Walmart’s BNPL offering could actually expand the overall visibility and acceptance of BNPL services, potentially benefiting Affirm in the long run. This broader perspective, considering both the limited direct impact of Walmart’s move and the expansive future prospects of the BNPL sector, underpins Dolev’s optimistic Buy rating for Affirm Holdings.
In another report released on April 17, Barclays also maintained a Buy rating on the stock with a $41.00 price target.
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Affirm Holdings (AFRM) Company Description:
Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a major share of its revenue from the United States.
Read More on AFRM:
- Affirm price target lowered to $41 from $50 at Barclays
- UPS upgraded, PepsiCo downgraded: Wall Street’s top analyst calls
- Needham starts Affirm at Hold on high valuation and stock-based compensation
- Affirm initiated with a Hold at Needham
- Affirm Holdings call volume above normal and directionally bullish
