Affirm price target lowered to $16 from $19 at JPMorgan

JPMorgan analyst Reginald Smith lowered the firm’s price target on Affirm to $16 from $19 and keeps a Neutral rating on the shares post the fiscal Q2 results. The company’s gross merchandise volume, revenue and transaction margins were meaningfully below estimates as discretionary spending slowed and it tightened lending standards, the analyst tells investors in a research note. The firm reduced estimates, saying the quarter "highlighted a few unexpected obstacles," but that "none seem particularly insurmountable." That said, it thinks the shares will "remain in the penalty box" until investors see evidence of profitability and re-accelerating GMV growth.