Affirm Holdings is bound to bounce as the stars line up for the buy now, pay later stock making it a prime addition to investors’ portfolios, according to Bernstein. The investment firm initiated coverage of Affirm with an outperform rating and a price target of $100 per share, implying 34% upside from Tuesday’s close. “Affirm, in our view, is at a unique intersection of several tailwinds – expanding [total addressable market (TAM)], compounding network effects, and several optionalities,” analyst Harshita Rawat said Tuesday in a note to clients. She noted that one of the biggest drivers of upside to Affirm may be its opportunity to serve the “sizable” and “constantly evolving” buy now, pay later market. AFRM YTD mountain AFRM YTD “The TAM is sizable, no matter how you slice it,” Rawat wrote. “Affirm’s product velocity has meant that the TAM is also constantly evolving e.g., into new verticals…channels…and merchants.” BNPL accounts for just about 5% of e-commerce sales in the U.S., in addition to 1% of overall card spend, according to Bernstein. However, the payment method is poised to gain traction among shoppers in the U.S., particularly as e-commerce giants such as Amazon and Shopify leverage BNPL to drive greater conversion and order values, per the analyst note. Bernstein’s call falls in line with consensus on the Street. Of the 34 analysts covering Affirm, 25 have a buy or strong buy rating on the stock, LSEG data shows. Shares have traded flat in 2026.
Several tailwinds could boost this payment stock, Bernstein says
