Affirm Holdings Sees Positive Analyst Outlook Amid Expanding Market Share

$AFRM

Affirm Holdings (NASDAQ: AFRM), a significant entity in the buy-now-pay-later (BNPL) sector, saw its shares rise by 5.2% during pre-market trading following an upgrade from analysts at BTIG, who changed their rating from “neutral” to “buy.” Projections indicate that Affirm’s operating income margin could reach 19% by fiscal 2025, closely approaching American Express’s (NYSE: AXP) margin of 20%.

Traditional credit card companies, such as American Express, are facing rising credit losses, leading to a strategic pullback from the market. This trend creates openings for alternative lenders like Affirm to increase their market presence.Moreover, regulatory changes, including new late-fee rules from the Consumer Financial Protection Bureau, are likely to reduce the appeal of credit cards, possibly steering more merchants and consumers toward BNPL solutions.

Affirm’s growth strategy also emphasizes s engagement with merchants and rising consumer demand, with expectations of a 30% year-over-year increase in Gross Merchandise Volume (GMV) for fiscal 2025. This growth rate significantly outpaces that of conventional credit card issuers.The firm’s expanding market reach is illustrated by its partnerships with major retailers, such as Walmart (NYSE: WMT), which now offers Affirm’s BNPL options to its customers.

As Affirm Holdings continues to navigate the evolving landscape of consumer finance, the company appears well-positioned to enhance its influence in the BNPL sector. With favorable growth projections and a focus on profitability, Affirm is poised to maintain its upward in a competitive financial market.

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