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Investing.com - Mizuho maintained its Outperform rating and $108.00 price target on Affirm Holdings Inc. (NASDAQ:AFRM) on Monday, highlighting potential benefits from OpenAI’s recent commerce initiatives. According to InvestingPro data, Affirm’s stock currently trades at $67.90, with analyst targets ranging from $64 to $115, suggesting significant upside potential.
The research firm noted that OpenAI launched Instant Checkout on September 29, an "agentic commerce partnership" with Shopify, which represents Affirm’s second-largest partner after Amazon, estimated at approximately 10% of Affirm’s GMV (Gross Merchandise Volume). With a market capitalization of $22.11 billion and impressive revenue growth of 38.8% over the last twelve months, Affirm has demonstrated strong market presence.
Mizuho observed that since the OpenAI announcement, Shopify’s stock has significantly outperformed Affirm’s, breaking from their previous pattern of similar performance, with Affirm failing to re-rate partly due to what the firm called "overblown credit concerns." InvestingPro analysis shows Affirm maintains strong liquidity with a current ratio of 11.52, suggesting robust financial health despite market concerns.
The research firm projected that future integration of Buy Now, Pay Later (BNPL) services into agentic commerce checkout flows could potentially add approximately $1 billion or about 2% to Affirm’s GMV, with even greater potential if other partners like Etsy deploy similar strategies.
While making minor downward adjustments to its model (1-1.5% lower revenue and adjusted operating income for fiscal 2026), Mizuho characterized its estimates as conservative and maintained its positive outlook on the stock.
In other recent news, Affirm Holdings Inc. has been the focus of several notable developments. Rothschild Redburn upgraded Affirm’s stock from Neutral to Buy, citing growth potential and raising the price target from $74.00 to $101.00, suggesting a potential 30% upside. Meanwhile, Citizens Financial reiterated its Market Outperform rating for Affirm, emphasizing a significant growth runway and a broad range of retail partners. BTIG maintained its Neutral rating on Affirm, noting stable delinquency trends in the company’s asset-backed securities data.
Additionally, Affirm has partnered with Ace Hardware to offer buy now, pay later options in stores across the United States, enabling flexible payment plans for purchases starting at $50. This collaboration allows customers to use a QR code at checkout for real-time eligibility checks. In contrast, concerns about consumer credit quality have affected several companies, including Affirm, as investors worry about the financial health of lower-income consumers. Despite these concerns, Affirm continues to receive positive attention from analysts and expand its retail partnerships.
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