BofA Raises $AFRM Price Target to $104, Sees Growth Catalysts Not Yet Priced In

Bank of America raised its 12-month price target on Affirm to $104 from $93 while maintaining its Buy rating, implying roughly 34-35% upside, after the buy now, pay later company posted record fiscal fourth-quarter results in late August.
Analyst Matthew O'Neill said Affirm's guidance of more than $64 billion in gross merchandise volume for the next fiscal year, at least 27% growth from about $50.2 billion in fiscal 2026, looks like a floor rather than a ceiling, arguing management set the bar low to support a "beat and raise" pattern. He also flagged catalysts not yet reflected in guidance, including a possible bank charter, a B2B payments push, long-duration U.K. lending, and brand-sponsored promotions.
On credit, BofA said a rise in Affirm's provision density stemmed from a shift in loan and funding mix rather than weakening credit quality.
Affirm's fiscal Q4 showed gross merchandise volume of $14.1 billion, up 36% year over year; revenue up 33% to about $1.2 billion; revenue less transaction costs up 39% to $589 million; and adjusted EPS of $4.62, beating estimates of $3.77. Net income reached $1.6 billion, aided by a tax adjustment, marking the company's most profitable quarter on record.
Other banks have moved similarly: BMO Capital to $101, RBC Capital to $96, Needham to $100, J.P. Morgan to $105, and Citi to $115.