Vincent Caintic, BTIG’s analyst, sees Affirm Holdings Inc. (NASDAQ: AFRM), as a company that is well-positioned to take advantage of the continued demand for Buy Now Pay Later (BNPL), a service which Gen Z finds appealing.
The shares of the Financial Technology Company have already risen by 90% in the last two months – but, the investment firm believes that, for long-term shareholders, it is not too late to invest some capital into AFRM.
Caintic rates Affirm as a “buy”, and anticipates that it will reach $68 before the end of 2025.
He even called it better than American Express in a recent letter to his clients.
Stocks of Affirm could be soon free from a massive overhang
Affirm is partnering with leaders in the industry like Apple and Amazon, to provide BNPL to more than 18 million users around the world.
This is important because more users means more transactions, which its management views as crucial to achieve profitability.
The fintech company reported $7.2 billion gross merchandise value in August for its fourth quarter, up a staggering 31% over from last year.
AFRM’s non-GAAP profit confirms that it is on the right track.
In the last 12 months, this Nasdaq listed company has generated a free cash flow close to 300 million dollars.
It’s increasingly probable that Affirm will achieve profitability soon, and this will reduce the huge burden on its stock.
Can AFRM share make you a multi-millionaire one day?
Affirm Holdings is located in the middle of the Financial Services Sector, giving it a market size of over several trillion dollars.
Comparatively, the market capitalization of its shares is currently under 14 billion dollars, which indicates a huge room for expansion.
This California-based firm is expected to grow annually at a rate greater than 24 percent through the end this decade.
AFRM is exploring the possibility of boosting its stock price through point-of sale opportunities.
The company is gaining popularity among young consumers, which indicates that the BNPL craze will be around for a long time.
The BTIG analyst expects Affirm even to surpass AMEX when it comes to operating income margin.
Affirm Holdings currently has a metric of 19% and American Express is at 20%.
It’s still not clear if Affirm’s stock is capable of exploding to the point where you could become a multi-millionaire. However, the evidence suggests that the company hasn’t yet satisfied its investors.
This post may change as new information is revealed.
