Affirm price target lowered to $43 from $50 at RBC Capital

RBC Capital lowered the firm’s price target on Affirm to $43 from $50 and keeps a Sector Perform rating on the shares. The company delivered a strong quarter with acceleration across Gross Merchandise Volume, revenue, and Revenue Less Transaction Costs, or RLTC, but standing out was the meaningful increase in operating income at $79M thanks to Affirm’s restructuring program and several operational efficiency efforts, the analyst tells investors in a research note. The improved expense structure is a signal of the company’s operating leverage potential and a step towards improved visibility to profitability, though the firm’s price target cut reflects valuation framework of similar growth peers, RBC adds.