Loop Capital initiated coverage of Affirm with a buy rating and a $105 price target, signaling roughly 45% upside from Tuesday’s close. Analyst Reginald Smith described the company as a high-quality growth story in consumer fintech. “Affirm already powers over $50 billion in annual gross merchandise revenue, connecting more than 27 million consumers with over 500,000 merchants, yet the average consumer transacts fewer than seven times per year,” Smith noted. “As distribution expands through partners like Stripe and Adyen and the Affirm Card drives near-ubiquitous acceptance, we see a clear path to sustained 25%-plus GMV and revenue growth.” He highlighted that the average Visa credit card generates roughly 70 transactions annually, underscoring Affirm’s runway for expansion. Smith also pointed to Affirm’s Visa-branded card as a $2.4 trillion opportunity by annual purchase volume, with 4 million current users and potential to grow fivefold. Against key competitor Klarna, he noted Affirm is one-third the size by GMV but generates 40% more transaction profit dollars and nine times more adjusted operating profit, driven by a higher installment loan mix and lower marketing spend. Affirm shares are down 3% year-to-date but up 42% over the past six months, with 28 of 36 covering analysts rating the stock a buy or strong buy, per LSEG.
