BTIG analyst Vincent Caintic has maintained their neutral stance on AFRM stock, giving a Hold rating on October 24.
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Vincent Caintic’s rating is based on a combination of factors, primarily focusing on the stability of Affirm’s asset-backed securities (ABS) and the company’s growth metrics. While the September data for Affirm’s ABS generally showed stable trends, there was a slight increase in early-stage delinquencies for the 2024-A vintage. This uptick is not overly concerning given that other vintages have not shown similar trends.
Despite the increase in delinquencies, the impact on Affirm’s credit reserves is expected to be minimal, as the primary driver for these reserves is new originations. However, there is some concern regarding Affirm’s growth in gross merchandise volume (GMV), especially with traditional lenders like credit card companies pushing for more growth. This competitive pressure, along with potential adjustments in Affirm’s underwriting due to macroeconomic uncertainties, could lead to slower GMV growth than the market anticipates.
In another report released on October 24, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $79.00 price target.
Based on the recent corporate insider activity of 123 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AFRM in relation to earlier this year.