Barclays on Affirm Holdings Inc. (AFRM) Annoucement That BNPL Capabilities are now available through Apple Pay: 'Apple Pay Rollout Begins
Barclays analyst Ramsey El-Assal reiterated an Overweight rating and $50.00 price target on Affirm Holdings Inc. (NASDAQ: AFRM).
The analyst comments "Affirm/Apple Pay integration launched with iOS 18. AFRM's integration with Apple Pay went live with iOS 18, which was released today (for more, see Preliminary Thoughts on the Affirm/ Apple Pay Partnership, 6/11/24). We note that iOS 18 is compatible with most iPhone models released over the past 5 years (iPhone XS and newer). We believe the primary gating factor to the breadth of the rollout is the speed at which iPhone users upgrade their operating systems. However, if history is a guide, over 50% of eligible iPhone users are likely to upgrade within a month of the release, we believe. There are several other factors to consider when gauging the impact of today's rollout. First, it is likely to take some time for AFRM to build awareness among consumers when it comes to discovering AFRM as a checkout option in the Apple Pay flow. We also note that the current integration does not support offline POS transactions (though we believe this remains a long-term goal for AFRM). Likewise, transactions for users outside the U.S. are not supported. And lastly, we believe 0% APR offers may initially be limited on Apple Pay."
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Shares of Affirm Holdings Inc. closed at $44.01 yesterday.