US Consumers' Resiliency to Benefit Payments Companies, BofA Securities Says

12:40 PM EST, 11/02/2026 (MT Newswires) -- US consumers continue to be resilient, with data indicating a late-cycle normalization that should benefit payments companies like Affirm (AFRM), Global Payments (GPN), Block (XYZ) and Stripe, BofA Securities said in a Sunday note. Retails sales rose 6.3% year on year in September, backing payments volumes, but both payroll growth and consumer sentiment declined the same month, the investment firm said. BofA noted Affirm's fiscal 2027 targets, with management eyeing at least $64 billion in gross merchandise volume and 14.5% in operating margin. Block, meanwhile, guided for slowing gross profit growth in Q3 and Q4 though management expects transaction losses to moderate, the brokerage added. BofA said it remains bullish on Affirm, while it maintained its buy rating and $115 price target on Block. Price: 77.20, Change: +3.73, Percent Change: +5.08