Morgan Stanley has upgraded Affirm Holdings Inc. (NASDAQ:AFRM), a payment network operator in the U.S. and Canada, as the company has started implementing strategies to attract higher-income users.
The analyst had previously expressed concerns about Affirm’s growing customer base, noting that it was becoming more skewed toward lower-income individuals with weaker credit profiles, which could challenge the company’s long-term growth.
However, Affirm’s integration with Apple Pay has expanded its reach to a younger, higher-income demographic. Morgan Stanley expects this partnership to generate an additional $1.94 billion in transaction volume by FY26, surpassing the earlier estimate of $1.0-1.5 billion.
The analyst has upgraded Affirm stock from Underweight to Equal-Weight with a price target of $37,
