BofA Starts Covering Affirm Holdings (AFRM) with Buy Rating

Affirm Holdings Inc. (NASDAQ:AFRM) is among the 10 most undervalued stocks to buy and hold for 10 years. On March 5, BofA Securities initiated coverage on Affirm Holdings Inc. (NASDAQ:AFRM) with a Buy rating and a price target of $82. In its report, the firm cited Affirm Holdings Inc.’s (NASDAQ:AFRM) diversified growth and strong gross merchandise volume momentum as key factors supporting the rating, adding that the company’s expanding merchant and consumer networks and efficient multichannel model drive above-market growth.

BofA Securities noted that long-term demand benefits from younger consumers adopting buy-now, pay-later services and choosing Affirm as their preferred payment option. The firm said Affirm’s consistent unit economics and disciplined credit management reinforce confidence in the business model, highlighting that the company increased its fiscal 2026 targets and showed no signs of credit or demand weakness.

Meanwhile, on March 3, Stripe announced that it will support Affirm Holdings Inc. (NASDAQ:AFRM)’s buy-now, pay-later methods as a payment option for Shared Payment Tokens, a payment primitive for agentic commerce that lets AI agents initiate payments with a customer’s permission and preferred payment method.

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, and merchant commerce solutions.

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.

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