Affirm Holdings rises after Needham upgrades to 'buy' rating

Shares of buy-now-pay-later firm Affirm Holdings AFRM.O rise 3.6% to $71.2 premarket

Needham upgrades stock to "buy" from "hold", after lender submitted applications to establish Affirm Bank, a proposed Nevada-chartered industrial loan company

Needham says this could be a "game-changer" for Affirm as it would give it access to deposit funding for loans, reduce third-party risks by bringing products in-house as well as by supporting product development

Needham sets $100 PT - an over 45% premium to the stock's last close

"AFRM's decision to apply for an ILC gives us incremental confidence in the durability of the growth outlook, while also adding ample opportunities to increase EPS power over the next several years," Needham said

20 of 28 brokerages rate the stock "buy" or higher, and the rest rate it "hold"; their median PT is $95 - data compiled by LSEG

AFRM shares up 22.2% in 2025