UPDATE: Mizuho Securities Starts Affirm Holdings Inc. (AFRM) at Buy
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Mizuho Securities analyst Dan Dole initiates coverage on Affirm Holdings Inc. (NASDAQ: AFRM) with a Buy rating and a price target of $90.00.
The analyst comments "Initiate coverage at Buy, PT $90. They say that "80% of success is simply showing up" ... and this is partly how we view AFRM, which should benefit from accelerating secular tailwinds in the US buy-now-pay-later market, a favorite amongst the ~140mn Gen Z & millennials. Our bottom-up and top-down models show a clear path to a sustained 30-35% long-term sales CAGR as BNPL penetration grows rapidly in the US, and as new partnerships like Shopify help transition AFRM's sales mix into everyday purchases, boosting user transaction frequency. AFRM is unprofitable, but margins exceed those of its best-in-class peer in the US. As scale improves, we see a path to 20-30% long-term margins."
Shares of Affirm Holdings Inc. closed at $68.94 yesterday.
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