Morgan Stanley analyst James Faucette downgraded Affirm to Equal Weight from Overweight with a price target of $15, down from $46. The company’s "product ambitions are too large given narrow incremental benefits," the analyst tells investors in a research note. The firm cites slow consumer behavior change, development cost limitations, pricing missteps, and the potential for increasing customer acquisition friction for the downgrade. It says Affirm’s features of zero late fees and no compounding interest provide limited incremental benefit to only a small percentage of consumers at any given time.
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on AFRM:
- Street Wrap: Today’s Top 15 Upgrades, Downgrades, Initiations
- Affirm price target lowered to $12 from $18 at Deutsche Bank
- Affirm price target lowered to $20 from $24 at DA Davidson
- RBC Capital cuts Affirm to Sector Perform on higher funding costs, slower sales
- Affirm price target lowered to $17 from $21 at Truist