Mizuho Pounds Table on Affirm (AFRM), Says Street Missing the Fact That At Scale Amazon Is Accretive to Take Rate

Mizuho Securities analyst Dan Dolev was out positive again on Affirm Holdings Inc. (NASDAQ: AFRM), saying the Street is missing the point that at scale, Amazon is accretive to the company's take rates. Dolev believes a large portion of the ~45% stock drop since results has been driven by fears of take-rate compression implied by the guidance, which investors largely attribute to the Amazon partnership.

The firm's analysis shows that such concerns are likely unmerited. "The take rate compression in 2H FY22 is merely driven by a timing difference between GMV & revenue recognition," he commented. The firm's detailed build shows, at scale, Amazon should be very accretive to Affirm's take rates.

The reiterated a Buy rating and $77.00 price target on AFRM.

For an analyst ratings summary and ratings history on Affirm Holdings Inc. click here. For more ratings news on Affirm Holdings Inc. click here.

Shares of Affirm Holdings Inc. closed at $41.80 yesterday.

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