On Monday, Barclays reiterated its Overweight rating on shares of Affirm Holdings Inc. (NASDAQ:AFRM) and price target of $50.00 following the launch of the company's integration with Apple (NASDAQ:AAPL) Pay.
This development comes as part of the rollout of iOS 18, which became available today. The compatibility of the new operating system extends to most iPhone models from the last five years, starting with the iPhone XS.
The analyst from Barclays highlighted that the widespread adoption of the integration will largely depend on the rate at which iPhone users update their devices to the latest operating system. Historical trends suggest that over half of the eligible iPhone users may upgrade within the first month of a new iOS release. Despite the optimistic view on the update rate, the analyst noted that it might take some time for Affirm to raise consumer awareness about its availability as a payment option within Apple Pay.
The current integration between Affirm and Apple Pay is limited to online transactions and does not extend to offline point-of-sale or users outside the United States. Additionally, the analyst pointed out that the zero percent annual percentage rate (APR) offers through Apple Pay might be initially restricted.
The Barclays analyst emphasized the significance of the integration for Affirm, considering the potential reach among iPhone users. However, they also cautioned that the impact of the rollout would need to be evaluated over time, taking into account the various factors that could influence its success, including user adoption rates and the expansion of services.
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