Affirm Holdings Inc. (NASDAQ:AFRM) ranks among the best growth stocks to buy and hold for the long term. Following the company’s conference presentation, Baird reaffirmed a Neutral rating on Affirm Holdings Inc. (NASDAQ:AFRM) with a $55 price target on March 5.

Baird believes the company’s risk-reward profile is balanced to moderately favorable at 36x calendar 2026 projections. The firm recognized the company’s solid growth rate and potential for market dominance. However, these benefits are outweighed by macroeconomic concerns such as discretionary expenditure and defaults.

At the same time, BofA Securities began coverage of Affirm Holdings Inc. (NASDAQ:AFRM) with a Buy rating and a target price of $82. According to the firm, younger consumers are adopting buy now, pay later options and using Affirm as their preferred payment method, which improves long-term demand. The firm added that Affirm’s stable unit economics and careful credit management boost investor trust in the company’s model.

Affirm Holdings Inc. (NASDAQ:AFRM) operates a platform for digital and mobile-first commerce, consisting of a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.

While we acknowledge the potential of AFRM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.