A buy now, pay later stock has been sliding. It’s worth scooping up, Wolfe Research says
Affirm Holdings has pulled back since its strong quarterly earnings report, making it a good time to buy shares of the payments company, according to Wolfe Research. The research firm upgraded the buy now, pay later stock to outperform from peer perform. Its price target of $90 implies upside of 26% from Friday’s close. “With AFRM shares having underperformed since the strong F4Q print, we view valuation as more compelling and continue to view AFRM as a structural winner with key growth drivers and proven execution,” analyst Darrin Peller said Monday in a note to clients. Shares of Affirm have slid roughly 8% since Aug. 27, when the company reported fiscal fourth quarter results. In that time, it has also lagged competitors such as Klarna along with the S & P 500. Klarna shares and the S & P 500 are down about 1% since then. AFRM mountain 2026-08-27 AFRM since Aug. 27 However, the buy now, pay later company is poised to rally due to its strong underlying fundamentals and structural tailwinds, per the research firm. “AFRM continues to execute well, with meaningful share gains, Affirm Card momentum, and strong 0% APR trends,” Peller wrote. The analyst added that the company may widen its international footprint and further diversify its verticals to drive upside to its shares. “International expansion…also remains a key opportunity, along with further vertical diversification (including into services),” Peller said in his note. “While there has been extensive focus on the BNPL competitive landscape, AFRM continues to meaningfully take share (both with existing merchants and new logos) while seeing healthy user growth and increasing transaction frequency…Looking longer term, other growth drivers include Affirm Edge and agentic commerce.” Wolfe Research’s call is in line with consensus on Wall Street. Of the 37 analysts covering Affirm Holdings, 29 have a buy or strong buy on the stock, LSEG data shows.
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