Truist Reiterates Buy Rating on Affirm Holdings Amid UK Expansion

Affirm Holdings' stock has received a positive review from Truist Securities, which reiterated its Buy rating and $85 price target. The firm noted that Affirm's partnership with Amazon has expanded into the UK, but this announcement was overshadowed by other market developments.

Truist stated that a higher short end and flatter yield curve is generally viewed negatively for the financial services sector. However, the firm believes that Affirm remains a catalyst-rich stock with multiple growth drivers.

The research firm identified five key catalysts for Affirm over the next 12 months: the company's expansion into new markets, its partnership with Amazon, the launch of its AI model for real-time loan decisions, the $750 million asset-backed securities transaction, and its significant growth potential in consumer fintech.

Truist also noted that the recent pullback in Affirm's stock creates an attractive entry point, with shares trading at 17 times their calendar year 2028 adjusted earnings per share forecast. This represents a relatively low price-to-earnings growth ratio of approximately 0.6.