BNPL Player Affirm Holding’s Stock Rises After-Hours On Analyst’s Bullish Initiation But Retail Stays Cautious

Buy-now, pay-later (BNPL) platform provider Affirm Holdings, Inc. (AFRM) stock added an incremental 2.74% in Monday’s after-hours session following a 5%+ rally in the regular session.

The gains in the extended trading hours came after the San Francisco, California-based company received a bullish recommendation from a Wall Street firm.

TheFly reported that TD Cowen Securities initiated coverage of Affirm Holdings stock with a ‘Buy’ rating and a $50 price target, implying 33% upside from current levels.

Analysts at the firm named Affirm as one of the top performing buy-now-pay-later brands in the U.S. with a full-suite point-of-sale lending capability versus peers. They added that the company likely has the most pro-consumer practices in the industry.

Also, Affirm Holdings has more seasoned underwriting capabilities versus peers, given that it started out underwriting longer-term loans first before adding pay-in-four capabilities, Cowen said. 

The firm was also positive about Affirm's slate of "heavyweight partners" in e-commerce, including Amazon, Inc. (AMZN)  and Shopify, Inc. (SHOP).

On Stocktwits, retail sentiment toward Affirm stock remained ‘neutral’ (52/100) and the message volume stayed ‘normal.’

A bullish watcher said they bought the dip at the $34 level and will add more if the stock falls further.

On the other hand, a bearish user said the stock could be headed toward the $25-$30 range.

Affirm Holdings stock traded at $47.75 ahead of the Trump tariff sell-off and it is currently down over 38% this year.

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