Affirm Holdings Inc (NASDAQ:AFRM) Targets Growth in the BNPL Sector

• Price Target Set: Rayna Kumar from Oppenheimer sets a price target of $80 for AFRM, indicating a potential upside of 16.11%.
• Strategic Focus: AFRM emphasizes vertical integration to enhance profitability amidst regulatory challenges and competition.
• Financial Performance: In Q3 of fiscal year 2025, AFRM's revenues surged by 36%, and its adjusted operating margin improved by 860 basis points.

Affirm Holdings Inc (NASDAQ:AFRM) is a key player in the Buy Now, Pay Later (BNPL) sector. The company is known for its innovative approach to consumer financing, allowing customers to make purchases and pay over time. AFRM competes with other BNPL companies like Afterpay and Klarna. On July 21, 2025, Rayna Kumar from Oppenheimer set a price target of $80 for AFRM, suggesting a potential upside of 16.11% from its current price of $68.90.

AFRM is focusing on vertical integration to boost profitability in a competitive market. By handling underwriting, loan origination, and collections internally, the company aims to cut costs and improve margins. This strategy is crucial as AFRM faces challenges from regulators, high interest rates, and competition. The company uses proprietary algorithms and funding to enhance loan performance and net interest margins.

In the third quarter of fiscal year 2025, AFRM's revenues increased by 36%, and its adjusted operating margin improved by 860 basis points compared to the previous year. This growth highlights the effectiveness of AFRM's strategic initiatives. The company is taking control of more aspects of the BNPL value chain to gain a significant market advantage.

Currently, AFRM's stock price is $68.90, reflecting a decrease of 0.82% or $0.57. During the trading day, the stock fluctuated between $66.94 and $70.40. Over the past year, AFRM's stock reached a high of $82.53 and a low of $22.25. The company has a market capitalization of approximately $22.23 billion, with a trading volume of 4.21 million shares today.