Affirm Stock Just Scored an Upgrade. Here's What to Know.

Affirm (AFRM) stock is extending gains on Sept. 14 after senior Wolfe Research analyst Darrin Peller issued a bullish note in favor of the buy-now-pay-later (BNPL) firm. In his research report, Peller upgraded the Nasdaq-listed firm to “Outperform” and assigned a $90 price target, which signals potential upside of more than $20 from here. 

Wolfe's bullish call is particularly significant given Affirm stock has already been in a sharp uptrend in recent months, currently up about 75% versus its March low. 

Why Is Wolfe Research Bullish on Affirm Stock?

According to Darrin Peller, the fintech stock offers an attractive risk-reward, especially after the company reported market-beating financials for its Q4.

More importantly, management’s guidance for a massive increase in GMV to about $64 billion in fiscal 2027 and an impressive adjusted operating margin of 30.5% signals continued upside ahead.

At the time of writing, AFRM shares are trading at a forward price-to-earnings (P/S) ratio of about 38x, which makes it more attractive to own than rival Klarna (KLAR), which has yet to turn sustainably profitable.

Note that Affirm Holdings has a history of gaining more than 6% on average in October, a seasonal trend that further improves its near-term appeal. 

Why Else Are AFRM Shares Poised for Gains?

In addition to an attractive valuation, Wolfe maintained its core thesis that Affirm remains a long-term “structural winner” in the point-of-sale financing space. 

According to its analyst, deepening merchant partnerships, expanding distribution networks, and superior underwriting capabilities are helping Affirm gain market share against conventional credit offerings. 

AFRM’s ability to maintain high credit quality while scaling GMV positions it to capitalize on e-commerce trends, reinforcing confidence in its long-term earnings trajectory, he concluded. 

It's also worth mentioning that Affirm shares, despite the recent surge, remain down more than 15% versus their year-to-date high.  

Wall Street’s View on Affirm

Interestingly, Wolfe remains one of the most conservative Wall Street firms on AFRM stock. 

According to Barchart, the consensus rating on Affirm sits at “Strong Buy,” with the mean price target of $99 indicating potential upside of more than 35% throughout the remainder of 2026. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.