Evercore ISI Starts Affirm Holdings Inc. (AFRM) at Outperform, 'Call us crazy'

Evercore ISI analyst Adam Frisch initiates coverage on Affirm Holdings Inc. (NASDAQ: AFRM) with a Outperform rating and a price target of $50.00.

The analyst comments "Call us crazy for going into the eye of the storm with a consumer credit play, but AFRM just has better risk management than the peer group and is well positioned to grow its user base in a fast-growing space with product expansion over time. It could even be a net winner if consumers are shut off from traditional credit, and the ~60% selloff to trough multiples takes us back to when credit facilities were not nearly as strong and BNPL was seen as a fad – that isn’t the case today. While we certainly acknowledge the macro storm clouds and the weak soft data, consumer spending and delinquency trends remain on fairly steady ground. We are taking the other side of consensus and believe macro weakness may actually benefit BNPL players if/when traditional credit pulls back. We also partnered with John Pancari (Evercore ISI analyst covering regional banks and specialty finance) to provide a summary of their funding strategy, which can appear convoluted to those that have not had experience with balance sheet exposure and different types of lending vehicles."

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 $37.57 yesterday.

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