UBS analyst Rayna Kumar initiated coverage of Affirm (AFRM) with a Neutral rating and $14 price target. The analyst states that based on its exclusive relationships with partners that include Shopify (SHOP) and Amazon (AMZN), the company has a "firm footing" in the BNPL model, but she remains concerned that "macro uncertainty" weighs on its outlook. Kumar adds that she still sees Affirm remaining on track to reach sustainable adjusted operating profitability by Q4 or FY23 based on the management’s strategic decisions to "reduce hiring, shift headcount to lower cost geographies, and optimize investments on high-ROI initiatives".
Published first on TheFly
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