11:53 AM EST, 01/28/2025 (MT Newswires) -- Affirm (AFRM) is expected to see "robust" gross merchandise volume, or GMV, results, backed by a "strong" Black Friday and Cyber Monday, or BFCM, period and growth in non-store sales in December, Morgan Stanley said in a note Tuesday.

The analysts said with Amazon.com (AMZN) and Shopify (SHOP) making up 23% and 15% of Affirm's GMV, respectively, Affirm is likely to benefit from a strong BFCM period, especially from larger enterprise merchants focused on general merchandise. Additionally, December saw non-store sales increase by 10.2% year-over-year, up from 6.8% in November. Affirm also added new merchant partners like Garmin and Hotels.com further boosting expectations for strong GMV growth.

The analysts added while funding won't be an issue for several years, they expect the company to consider applying for an industrial loan company license under the Trump administration. Acquiring this license would allow Affirm to improve its earnings on deposits and reduce its reliance on the forward flow and securitization markets as the business continues to grow, they said.

"We are optimistic that the business can continue to grow rapidly while maintaining delinquencies and improving margins, but believe risk-reward is balanced at current levels and would still like to see demonstrable evidence that the business can durably attract and retain high-income consumers," the analysts said.

Morgan Stanley raised its price target on Affirm to $55 from $39 while keeping its equalweight rating.

Price: 55.70, Change: +0.53, Percent Change: +0.96