Cantor Fitzgerald has opened coverage on Affirm Holdings Inc. (NASDAQ: AFRM) with an Overweight rating and a price objective set at $85.00. That target equates to about a 24% premium versus Affirm's quoted share price of $68.71 at the time the research was published. InvestingPro data cited by the research firm places Affirm's market value at $22.68 billion.
The research note frames Affirm as a creator of a distinct payment model within the Buy Now, Pay Later (BNPL) segment and sees significant room for global expansion. Cantor Fitzgerald emphasized Affirm's recent commercial momentum, pointing to 37% revenue growth over the prior twelve months as evidence of accelerating adoption.
On funding and balance-sheet risk, the firm highlighted what it describes as a "durable funding model" that curbs balance-sheet exposure while generating institutional demand for the company's loan assets. Cantor Fitzgerald referenced Affirm's reported current ratio of 14.61 as a sign of financial flexibility.
Management execution and distribution were also central to the research house's thesis. Cantor Fitzgerald singled out Affirm's leadership team for consistently delivering on product innovation and execution milestones. The firm pointed to the company's expanding roster of partners and marquee clients as critical infrastructure for scaling internationally.
From a profitability and valuation standpoint, InvestingPro metrics show that Affirm returned to profitability over the last twelve months. Still, the company trades at a relatively high price-to-earnings multiple of 103.41, a valuation feature the research note took into account when framing upside versus risk.
Cantor Fitzgerald spelled out the construction of its $85 price target. Half of the valuation weight reflects a multiple-based approach using 12 times the firm's Calendar Year 2027 Gross Profit estimate of $2.416 billion. The remaining half is derived from a discounted cash flow analysis; both components were weighted equally in reaching the target.
At the same time, the research note acknowledged a countervailing signal from InvestingPro's Fair Value model, which indicates that Affirm may be somewhat overvalued at prevailing market levels. Cantor Fitzgerald's stance thus mixes appreciation for the company's growth trajectory with recognition of valuation tension.
The firm outlined several specific risks that could undermine the investment case. A macroeconomic slowdown that weakens consumer spending or tightens funding markets could pressure originations and returns. Falling interest rates represent another headwind, as they could compress income derived from interest-bearing loan assets. The research house also warned that changes in legal or regulatory policy applicable to BNPL providers could raise costs and reduce revenue potential. Investors should also note the stock's high beta of 3.57, signaling notable sensitivity to broader market swings.
The note arrived amid a string of company initiatives that Cantor Fitzgerald and InvestingPro highlighted as evidence of Affirm's strategic activity. Affirm has been expanding distribution through partnerships, including an agreement with Bolt that names Affirm as the default BNPL option across Bolt's U.S. checkout platform. Another commercial tie-up with Fiserv is intended to embed BNPL capabilities into debit card programs for financial institutions, making flexible payment options available to thousands of U.S. banks and credit unions.
Affirm is also pursuing structural expansion of its financial services capabilities. The company has applied for an industrial bank charter in Nevada to form Affirm Bank, a wholly owned, FDIC-insured subsidiary. In underwriting, Affirm is moving toward incorporating real-time financial data to better capture consumers' current financial positions at checkout. That underwriting enhancement is already available to Affirm Card holders who link third-party bank accounts or use Affirm Money Accounts, with broader rollout planned.
On the analyst front, Citizens has maintained a Market Outperform rating and a $105.00 price target on Affirm, underscoring continued favorable sentiment among some observers. Citizens' view was noted in the research as set against a backdrop of increasing participation by private credit funds in specialty finance, which the note flagged as a relevant market dynamic.
For readers seeking further detail, the research referenced a dedicated Pro Research Report on the platform that provides deeper analysis, ProTips, and expanded financial health metrics for Affirm.
Bottom line: Cantor Fitzgerald's Overweight initiation on Affirm pairs confidence in the company's growth, funding approach and partner-led distribution with explicit recognition of valuation, macro, interest-rate and regulatory risks. The firm's $85 target rests on a split valuation methodology combining a 2027 gross profit multiple with a discounted cash flow model.