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Bernstein Bullish on Affirm Despite Fintech Skepticism
22 Jul
Summary
- Bernstein initiated coverage with an Outperform rating and $100 price target.
- Affirm shows strong GMV and revenue growth projections for upcoming years.
- Affirm Card's rapid growth and expansion offer significant future potential.
Bernstein has initiated coverage of Affirm with an "Outperform" rating and set a $100 price target. The firm sees Affirm benefiting from unique tailwinds, even amid broader skepticism toward the fintech sector. Affirm has demonstrated remarkable growth.
Bernstein projects a 28% compound annual growth rate for Gross Merchandise Volume (GMV) between 2026 and 2029. Revenue less transaction costs are expected to grow by 27%.
The buy-now-pay-later (BNPL) market is still nascent, representing only about 5% of U.S. e-commerce. Affirm's network effects are expanding, with roughly 27 million users and 515,000 merchants.
Affirm Card's contribution to GMV has surged to 18% from 1% in 2023, growing four times faster than the core business with accretive margins. The card shows considerable room for expansion, with only 16% penetration among Affirm's customer base.
