Affirm outlook nearly identical to 2021 guidance, says Deutsche Bank

Deutsche Bank analyst Bryan Keane keeps a Hold rating on Affirm with a $24 price target following the company’s investor day. Affirm discussed its outlook for the Affirm Card, strategies to win at checkout, new market expansion opportunities, the company’s funding model, and a slightly updated mid-term financial outlook, the analyst tells investors in a research note. The firm says that while management highlighted that it sees the company turning into an operating system rather than a payment network, it worries the model continues to evolve into more of a financial driven asset driven by interest bearing revenues with credit risk. In addition, multiple buy now pay later providers and financial companies will be rolling out aggressively their own versions of a consumer card payment, weakening Affirm’s competitive advantage, contends Deutsche Bank. The firm says the company’s updated mid-term outlook looks nearly identical to the one the company provided at its last investor day in September 2021.