Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the 10 best financial stocks to buy for the long term. On February 2, Intuit announced that it was adding buy now, pay later (BNPL) options to QuickBooks through a new multi-year partnership with Affirm Holdings, Inc. (NASDAQ:AFRM). The collaboration is designed to provide small businesses with a built-in solution that allows their customers to spread out payments over time. The added functionality is intended to help businesses increase conversions, improve cash flows, and provide customers with more flexible ways to pay at checkout.
In another development, Kyle Peterson of Needham upgraded Affirm Holdings, Inc. (NASDAQ: AFRM) from Hold to Buy after the company filed an application for a limited bank charter on January 27. He assigned a price target of $100 for the shares. The firm’s price target implies a further 69.5% upside from current levels, which exceeds the median Wall Street analyst estimate of 55.38% based on 33 analysts covering the stock.
Peterson pointed out the impact of the bank charter by saying:
“We believe this could be a game-changer for AFRM as it would give AFRM access to deposit funding for loans, reduce third-party risk by moving several products in-house (rather than offering them through banking partners), while also potentially accelerating growth and/or product development.”
The firm said it is increasingly confident in the company’s growth trajectory and profitability over the medium term.
Affirm Holdings, Inc. (NASDAQ:AFRM) operates a payment network across Canada, the United States, and internationally. The company’s platform includes a consumer-focused app, a point-of-sale payment solution for consumers, and merchant commerce solutions. Affirm Holdings, Inc. was incorporated in 2012 and is based in San Francisco, California.
While we acknowledge the potential of AFRM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 30 Most Fantastic Stocks Every Investor Should Pay Attention To.
Disclosure: None. This article is originally published at Insider Monkey.
