Affirm December securitization trends ‘largely encouraging,’ says Mizuho

Mizuho analyst Dan Dolev says Affirm’s asset backed security securitization trends for December are "largely encouraging." The analyst sees overall delinquencies for the company’s primary non-0% annual percentage rate trust declining by almost 20 basis points versus the prior month. This is an acceleration of the promising trend seen in November, the firm tells investors in a research note. While trends for the new 2022-A A securitization appear to "worsen somewhat, this trust is likely too new to draw any major conclusions," it adds. The analyst reiterates a Buy rating on Affirm with a $20 price target.