BofA Initiates Coverage of Affirm Holdings with Buy Rating, Sets Price Target at $120

Bank of America has launched coverage of Affirm Holdings (AFRM) with a Buy rating, assigning a $120 price target, which reflects a 30% upside from the stock’s closing price of $92.31 on March 7, 2026. This marks the first time BofA has formally evaluated AFRM, indicating growing institutional interest in the fintech’s strategic pivot toward higher-margin merchant services and improved credit risk management. The firm highlighted Affirm’s expanding revenue base, which reached $891 million in Q4 2025, up 15% year-over-year, driven by increased transaction volume and deeper integration with global retailers. AFRM’s gross payment volume (GPV) grew 18% in the same period, reaching $16.2 billion. Analysts noted that the company’s adjusted EBITDA margin improved to 12.4% in Q4, up from 5.8% in the prior-year quarter, suggesting better operational efficiency. The Buy rating follows a broader market reassessment of fintech valuations, particularly in the wake of PayPal (PYPL) reporting stronger-than-expected payment processing volumes and tech ETFs like the Vanguard Growth ETF (VGT) showing resilience in early 2026. AFRM’s current market cap stands at approximately $28.4 billion, placing it among the mid-tier fintechs in the sector. While the initiation is unlikely to trigger immediate price volatility, it may influence portfolio allocations among growth-focused funds and attract passive investor attention. Equity analysts at BofA emphasized the company’s potential to capture share in the $1.2 trillion global BNPL market, especially through its 'Pay in 4' product and international expansion into Europe and Latin America.