Affirm price target raised to $45 from $27 at BofA

BofA raised the firm’s price target on Affirm to $45 from $27 and keeps a Neutral rating on the shares. The stock was down materially after-hours following a beat and raise in Q2, though shares had rallied significantly the last two months, including 10% on the day ahead of the earnings report, which may have resulted in a “sell the news” dynamic, the analyst tells investors. Affirm is performing well within the BNPL market and continues to show a strong ability to manage credit risk, but the firm views the discretionary spending skew and core consumer base as risks and sees valuation as a limitation, the analyst added.