BTIG analyst Vincent Caintic initiated coverage of Affirm with a Neutral rating and no price target as part of a broader research note launching coverage on Consumer Finance names. The company has achieved significant gross merchandise volume, or GMV, growth since its IPO In January 2021, partially from taking credit card share but mostly from targeting debit-card customers, but the stock’s valuation contemplates a pure-payments multiple on much faster GMV growth, the analyst tells investors in a research note. BTIG adds that it remains worried that the investor and sell-side coverage may under-appreciate the company’s balance sheet lending and credit risk.
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