Affirm Holdings, Inc. (AFRM) stock is soaring 10.50% during intraday trading on Wednesday, driven by a significant analyst upgrade and the company's announcement of expanded credit reporting practices.

The surge in Affirm's stock price comes after Compass Point upgraded the company from Neutral to Buy. Analysts at Compass Point view the recent selloff following the loss of Affirm's Walmart partnership as overdone, estimating the impact to be only about 5% of gross merchandise volume and 2% of adjusted operating income. The firm raised its price target to $64 from $61, suggesting confidence in Affirm's growth prospects and financial performance despite the partnership loss.

Adding to the positive sentiment, Affirm announced it would expand its credit reporting to Experian to include all of its pay-over-time products starting April 1, 2025. This move aims to increase transparency in the buy now, pay later (BNPL) industry and help consumers build their credit histories. The expanded reporting could potentially lead to more informed lending decisions and support responsible credit extension, further solidifying Affirm's position in the growing BNPL market.