Affirm Holdings, Inc. (AFRM), the "buy now, pay later" fintech company, saw its stock soar by 5.18% in Thursday's pre-market trading session. The rally comes as analysts at Jefferies upgraded their rating on AFRM to Buy from Hold, with a raised price target of $82 per share.

According to Jefferies analysts led by John Hecht, Affirm has demonstrated an ability to capture a larger market share in the rapidly growing "buy now, pay later" sector. They expect Affirm's market share to rise from 35% currently to 40% by fiscal year 2027, driven by strong growth trends and potential for higher gross merchandise volume than previously forecasted.

The analysts cite factors such as margin expansion, interest-rate tailwinds, and the overall growth projections for the U.S. e-commerce and BNPL markets as catalysts for Affirm's revenue upside. With U.S. e-commerce expected to grow at an 8% CAGR from 2024 to 2027, and the BNPL market anticipated to grow at a 12.5% rate during the same period, Affirm is well-positioned to benefit from these favorable industry trends.