Affirm Likely to Extend Ongoing Share Gains in Buy Now, Pay Later Space, Oppenheimer Says

MT Newswires Live07-21

Affirm (AFRM) shares have a 15% upside potential as the company is expected to extend ongoing share gains in the Buy Now, Pay Later sector thanks to its "advanced underwriting, robust funding strategy," as well as a clear pricing structure and solid merchant partnerships, Oppenheimer said in a Monday note.

The broker said it expects the company's gross merchandise volume to rise at a mid-20% compound annual growth rate and adjusted operating income to increase at a high-20% CAGR over the next two years.

Based on recent conversations with the company, Oppenheimer analysts also said card volume growth in May was "modestly stronger" compared with Q1 and was consistent with April, which backs a "picture of resilient consumer spending."

Oppenheimer initiated coverage with an outperform rating and an $80 price target.

Price: 69.56, Change: +0.66, Percent Change: +0.96

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment