SoFi Technologies (SOFI) and Affirm Holdings (AFRM) saw gains after William Blair initiated coverage with a Buy rating for both fintech companies. The investment firm highlighted the growing appeal of digital finance options, especially among younger consumers seeking more transparent alternatives to traditional banking and credit cards. Affirm is recognized as a major buy-now-pay-later provider, while SoFi continues to grow as a leading digital bank.
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William Blair noted that top digital finance companies outperform traditional banks by offering superior user experiences and innovative financial products. They also use proprietary underwriting algorithms for real-time credit decisions, which provides a smoother and more convenient process for customers.
The firm described SoFi and Affirm as leaders in the space due to their standout features: user-friendly digital interfaces, straightforward financial products with instant approvals, and flexible payment plans with no hidden fees or late charges. It is worth noting that William Blair is led by five-star analyst Andrew Jeffrey, who has a 66% success rate on his stock ratings and a 14.7% average return per rating.
Which Fintech Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that AFRM stock has more room to run than SOFI. In fact, AFRM’s average price target of $68.60 per share implies more than 17% upside versus SOFI’s 13.11% downside risk.
