From Financial Modeling Prep: 2024-10-08 12:40:00

Affirm Holdings (NASDAQ:AFRM) shares surged 7% after BTIG upgraded the stock to Buy, citing potential GAAP profitability and market dominance in point-of-sale financing. Fiscal 2025 operating income margin is projected at 19%, nearing American Express’s 20%. Affirm’s GMV is expected to grow 30% year-over-year, fueled by strong merchant partnerships and consumer interest.

Analysts highlight Affirm’s market share growth in point-of-sale finance, driven by rising demand for BNPL solutions amid macroeconomic challenges. Affirm’s GMV growth, supported by merchant partnerships and consumer interest, is projected to outpace traditional credit card issuers in fiscal 2025.

Consumer finance shifts benefit Affirm as traditional credit providers face challenges. New regulations, like the Consumer Financial Protection Bureau’s late-fee rules, may drive consumers and merchants towards BNPL options. Affirm’s strong GMV growth, expanding margins, and retail partnerships, including with Walmart, contribute to BTIG’s positive outlook on the company’s future.



Read more at Financial Modeling Prep:: Affirm Upgraded to Buy by BTIG, Shares Jump 7%