Affirm price target lowered to $18 from $20 at Mizuho

Mizuho analyst Dan Dolev lowered the firm’s price target on Affirm to $18 from $20 and keeps a Buy rating on the shares. The analyst is "disappointed" by the fiscal Q2 results, saying the firm did not foresee the miss on gross merchandise volume and guide-down for the fiscal year. However, Mizuho sees "several reasons to remain optimistic" on the shares. The firm believes a large part of the weakness is due to poor demand in discretionary spend and notes that Affirm opts for "responsible underwriting over irresponsible growth." In addition, Affirm’s delinquencies are trending lower, which investors should cheer, writes the analyst.