Affirm (AFRM) shares have a 15% upside potential as the company is expected to extend ongoing share gains in the Buy Now, Pay Later sector thanks to its "advanced underwriting, robust funding strategy," as well as a clear pricing structure and solid merchant partnerships, Oppenheimer said in a Monday note.

The broker said it expects the company's gross merchandise volume to rise at a mid-20% compound annual growth rate and adjusted operating income to increase at a high-20% CAGR over the next two years.

Based on recent conversations with the company, Oppenheimer analysts also said card volume growth in May was "modestly stronger" compared with Q1 and was consistent with April, which backs a "picture of resilient consumer spending."

Oppenheimer initiated coverage with an outperform rating and an $80 price target.

Price: 69.56, Change: +0.66, Percent Change: +0.96