Affirm initiated with a Sell at BTIG

BTIG initiated coverage of Affirm with a Sell rating and $10 price target. The company has exhibited strong gross merchandise volume growth since IPO, but entering a new stage in the macro environment where discretionary spend is tightening quickly, Affirm’s business model is under pressure, the analyst tells investors in a research note. pressure. Rising rates are impacting funding costs and the gain on sale premium, while both variable and fixed costs are outstripping revenue growth, the firm added.