Affirm downgraded to Equal Weight from Overweight at Morgan Stanley

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.