Bank of America Sees Upside for Affirm Despite Modest Near‑Term Growth Forecast

Affirm Holdings is poised to continue its rally despite issuing a modest near‑term growth forecast, according to Bank of America. The bank maintains a Buy rating on the San Francisco‑based fintech and has lifted its 12‑month price target to $104 from $93, implying roughly 34% upside from Thursday’s close.

Analyst Matthew O’Neill noted that Affirm is “layering optionality on top of a conservative core algorithm,” adding that its core buy‑now‑pay‑later and card growth metrics, already tracking above management’s floor guidance, are being bolstered by additional growth vectors that remain unmodeled.

The company reported fiscal‑fourth‑quarter results that beat Wall Street expectations, sending the stock up about 13% in early premarket trading on Friday. Affirm forecasts current‑quarter revenue between $1.19 billion and $1.22 billion, above the $1.16 billion consensus from FactSet‑polled analysts.

Looking ahead, Bank of America highlighted two potential catalysts: securing a bank charter and launching brand‑sponsored promotions, both of which could drive the share price higher over the next year.

O’Neill also pointed out multiple pathways for the fiscal 2027 algorithm to exceed expectations, consistent with Affirm’s history of conservative guidance followed by outperforming results since its IPO.

Bank of America’s outlook aligns with broader Street sentiment: 26 of 35 analysts rate Affirm a Buy or Strong Buy, according to LSEG data. Year‑to‑date, the stock is up roughly 4%, and it has gained about 65% over the past six months.

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