TLDR
- Cantor Fitzgerald initiated coverage on Affirm with an Overweight rating and $85 price target, representing 24% upside from current levels
- The firm cited Affirm’s position in creating a new payment category through Buy Now, Pay Later with global growth potential ahead
- Bolt named Affirm as its default BNPL provider across its U.S. checkout platform, rolling out to merchants starting this month
- The partnership integrates Affirm’s payment options directly into Bolt’s one-click checkout system for both logged-in and guest shoppers
- Cantor’s price target uses 12x its 2027 gross profit estimate of $2.416 billion combined with discounted cash flow analysis
Affirm Holdings scored a double win on Tuesday with fresh analyst backing and a major partnership announcement. Cantor Fitzgerald initiated coverage with an Overweight rating and set an $85 price target on the stock.
The target represents a 24% gain from Affirm’s current trading price of $68.71. The company carries a market valuation of $22.68 billion.
Cantor Fitzgerald pointed to Affirm’s role in building out the Buy Now, Pay Later space as a new payment method. The firm sees room for global expansion ahead.
The research team highlighted Affirm’s funding model as a strength. The structure keeps balance sheet risk low while attracting institutional buyers for loan assets. The company’s current ratio sits at 14.61.
Affirm’s management team earned praise for innovation and execution. The analyst cited the company’s network of partners and major clients as key drivers for international growth. Revenue jumped 37% over the past twelve months.
Bolt Partnership Brings BNPL to One-Click Checkout
The same day brought news of a strategic tie-up with Bolt. The checkout technology company selected Affirm as its default BNPL provider across its U.S. platform.
The integration starts rolling out to select merchants this month. It will then expand across Bolt’s entire merchant network.
Affirm’s payment options will appear directly in Bolt’s one-click checkout. The feature works for both logged-in users and guest shoppers.
Eligible customers at Bolt-powered stores can split purchases into biweekly or monthly plans. Some options include 0% APR for qualifying buyers. Affirm doesn’t charge late fees, hidden fees, or compounding interest.
“Checkout is where intent turns into revenue, and flexibility matters in that moment,” said Ryan Breslow, Bolt’s Founder and CEO.
Steve McPhee, Senior Director of Strategic Partnerships at Affirm, said the deal will “deliver predictable, transparent payment options seamlessly and at scale.”
The integration aims to boost conversion rates and checkout completion for merchants. Bolt’s platform serves retailers including Revolve, Kendra Scott, and Lilly Pulitzer.
Price Target Based on 2027 Estimates
Cantor Fitzgerald built its $85 target using two methods with equal weight. The firm applied a 12x multiple to its 2027 gross profit estimate of $2.416 billion. It also ran a discounted cash flow analysis.
The analyst flagged several risks to watch. Economic slowdowns could hurt consumer spending and funding sources. Falling interest rates might cut revenue from interest-bearing loans.
Changes to laws and regulations affecting BNPL providers could raise costs and create revenue headwinds. The stock carries a beta of 3.57, showing high volatility versus the broader market.
Affirm trades at a P/E ratio of 103.41. The company turned profitable over the last twelve months. Payment options through Affirm require eligibility checks, with rates from 0-36% APR.
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