Investing.com -- JMP upgraded Affirm Holdings Inc (NASDAQ: AFRM ) to "market outperform" from "market perform," on the buy-now-pay-later firm's strong positioning and improved profitability outlook.

The brokerage set a price target of $78, implying a 24% upside from stock’s current levels.

Affirm shares have surged 38% since November, buoyed by expectations of a less stringent regulatory environment under the incoming U.S. administration. JMP noted this shift removes a key overhang for buy-now-pay-later players.

The company’s quicker-than-expected path to GAAP profitability in fiscal 2025, improving unit economics, and new partnerships, including integration with Apple (NASDAQ: AAPL ) Pay and expansion into the UK, were highlighted as key drivers for growth.

JMP also pointed to Affirm’s robust funding model and underwriting expertise, which position it as a leader in the BNPL sector, gradually taking market share from traditional credit card firms.

Affirm's fiscal 2025 GAAP EPS forecast was revised to a loss of 10 cents, up from a previously projected loss of 47 cents, boosted by gains from convertible debt retirement. The brokerage expects continued gains in profitability through 2026.