BofA Hikes Affirm Price Target to $88: Clean Beat and Raise Sets Up the May 12 Investor Day

Bank of America (NYSE:BAC) expert Matthew O'Neill raised his terms people connected Affirm to $88 from $82 connected May 11, portion reiterating a Buy rating. The expert upgrade follows a "clean bushed and raise" fiscal Q3 2026 study and frames the caller stock dip arsenic "a little aerial pocket" up of the company's capitalist forum.

Affirm (NASDAQ:AFRM) banal closed astatine $64.01 connected May 8, with shares trading adjacent $62 intraday Monday. The caller people sits supra the Street statement of $81.71.

The Analyst's Case

O'Neill's terms people rise rests connected Affirm's $1.04 cardinal successful fiscal Q3 2026 revenue, a 4% bushed that grew 33% twelvemonth implicit twelvemonth (YoY). Management besides lifted full-year FY2026 gross guidance to $4,175 cardinal to $4,205 million, the textbook beat-and-raise setup that Bank of America views arsenic a cleanable read.

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The Bank of America enactment treats Affirm stock's post-earnings weakness arsenic a tactical setup alternatively than a thesis crack, with the May 12 capitalist forum expected to refresh the medium-term fiscal framework. A credible people update could re-anchor the aggregate aft the caller pullback.

Company Snapshot

Affirm operates a buy-now-pay-later (BNPL) lending level that splits user purchases into installments and earns done merchant fees and involvement connected longer-duration loans. Q3 FY2026 GMV reached $11.6 billion, marking the 10th consecutive 4th of 30%+ GMV growth.

The Affirm Card remains the standout, with GMV up 146% YoY and 4.4 cardinal progressive cardholders. CEO Max Levchin highlighted currency generation, stating that Affirm added "approximately $230 cardinal to our nett currency (now astatine $1.35 billion) since December."

Why the Move Matters Now

Affirm banal trades astatine a guardant P/E ratio of 37x, with a precocious beta of 3.72 reflecting crisp swings connected recognition and macro headlines. The valuation already prices successful continued execution, truthful Bank of America's terms people rise to $88 leans connected durable GMV maturation and improving portion economics alternatively than aggregate enlargement alone.