Affirm price target lowered to $41 from $45 at BofA

BofA lowered the firm’s price target on Affirm (AFRM) to $41 from $45 and keeps a Neutral rating on the shares. Affirm printed “strong” Q3 results and Q4 guidance that was above BofA and the Street’s estimates, but the firm suspects “the tepid stock price reaction” was due to a combination of high investor expectations and a poor print from Shopify (SHOP), which it notes is one of Affirm’s biggest merchants. The firm, which remains “vigilant on potential macro impacts” given Affirm’s skew towards lower to middle-income discretionary spending, argues that the current valuation reflects a balanced risk/reward.