Affirm raised to Market Outperform as JMP calls it a ‘long-term secular winner’

JMP analyst David Scharf upgraded Affirm Holdings (NASDAQ:AFRM) shares to Market Outperform from Market Perform on Friday, calling it a “long-term secular winner at the expense primarily of the credit card industry.”

Further gains are expected from continued adoption of buy now, pay later solutions for everyday payments, he wrote in a note, adding the company “benefits from a more robust loan platform relative to competitors.”

Shares are already up nearly 40% since Affirm’s (NASDAQ:AFRM) Q1 2025 earnings released on Nov. 7, though Scharf remains “constructive on the shares at current levels,” based on prospects for a friendlier regulatory environment, as well as a faster-than-expected outlook for a return to GAAP profitability, better unit economics and user engagement, and momentum in new alliances and geographies.”

JMP’s Market Outperform rate diverges from the SA Quant system rating and the average SA analyst rating, both at Hold, but aligns with the average Wall Street analyst rating of Buy.

(AFRM) shares edged up 0.4% minutes after the opening bell.