Why Wolfe Research Maintains a Cautious Stance on Affirm Despite Multiple Growth Drivers

Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the best FinTech stocks to buy in 2026.

On December 9, Wolfe Research initiated coverage of Affirm with a Peer Perform rating, arguing that while the company has multiple credible growth drivers, the stock’s valuation leaves limited room for near-term upside. The firm characterized Affirm’s business momentum as solid but said a more attractive entry point would be needed before adopting a more constructive stance on the shares.

Wolfe highlighted several areas that continue to support Affirm’s growth outlook. One of the most important is the expanding use of 0% APR installment loans, which have gained traction as merchants increasingly favor promotional financing over upfront discounts. By offering consumers flexible monthly payment options rather than cutting prices outright, merchants can preserve margins while improving conversion rates. This dynamic has helped Affirm broaden adoption of its interest-free monthly loan products.

The firm also pointed to continued development of the Affirm Card as another growth lever. The card enables consumers to extend Affirm’s pay-over-time functionality beyond checkout to everyday spending, increasing engagement and transaction frequency across the platform. In addition, Wolfe cited Affirm’s ongoing international expansion efforts, including its push into European markets, as a longer-term opportunity that could further diversify revenue streams.

Despite acknowledging these growth avenues, Wolfe maintained a cautious view on valuation. The firm initiated coverage with a price range of $72 to $82, signaling that much of the expected operational progress is already reflected in the stock. As a result, Wolfe concluded that while Affirm’s strategy and product set are compelling, upside from current levels appears constrained without a reset in valuation expectations.

Affirm Holdings, Inc. (NASDAQ:AFRM) operates a buy now, pay later platform that enables consumers to split purchases into installments while helping merchants increase conversion through flexible payment options, including promotional 0% APR plans and a growing consumer card offering.

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