Affirm shares rose 6% to $73.82 after Bank of America raised its price target to $104; Sezzle and PayPal gained 4% and 3% respectively.
Shares of installment lender Affirm surged 6% on Wednesday after Bank of America raised its price target from $93 to $104, maintaining a "Buy" rating. Meanwhile, Sezzle shares rose 4% and PayPal gained 3%, primarily benefiting from falling government bond yields. Bank of America analyst Matthew O'Neill believes Affirm's $64 billion Gross Merchandise Volume (GMV) guidance is conservative, noting that a banking license and UK expansion are potential upside factors not yet factored in. Affirm achieved record profitability in its fiscal fourth quarter, with GMV growing 36% year-over-year to $14.1 billion, and adjusted earnings per share of $4.62, exceeding expectations of $3.77.
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