Affirm (AFRM) - Get Affirm Holdings Report shares soared Wednesday, after Target (TGT) - Get Target Corporation Report said it’s allowing customers to use the buy now, pay later service for purchases over $100.
“We know our guests want easy and affordable payment options that work within their family’s budget,” said Gemma Kubat, Target’s president of financial and retail services.
“Through our partnerships with Affirm and Sezzle [another installment payment service], Target is investing in new financial tools that make our shopping experiences more flexible and personalized to guests’ needs, right in time for the holiday season.”
As for Affirm, it “provides a convenient way to pay at your own pace with monthly payments,” Target said. “Apply with Affirm to get started. Then, shop online at Target.com, choose Affirm as the payment method at checkout and pick the monthly payment schedule that works for you.”
Affirm shares on Wednesday closed at $133.70, up 20%. The stock has skyrocketed 94% in the past three months amid investor enthusiasm for buy now, pay later platforms.
Last month, Mizuho raised its price target for Affirm, while Morgan Stanley approved of Affirm’s new Adaptive Checkout offering.
Mizuho analyst Dan Dolev lifted his price target on Affirm to $150 from $110, while affirming a buy rating on the shares, according to the Fly. He was enthusiastic about company's "top-of-wallet, primary transacting" Debit+ card
Meanwhile, Morgan Stanley analyst James Faucette said he was encouraged by the initial results of Adaptive Checkout’s capability. This enables merchants to give consumers greater installment payment choices at checkout.
As for Target, its shares on Wednesday closed at $226.83, down 0.3%.