BofA reiterated a Buy rating and $76 price target on Affirm (AFRM) after Klarna (KLAR) unveiled a partnership with Walmart (WMT). The firm said it is not surprised to see the stock trading lower, but it believes the selloff is overdone, as it continues to view Affirm as a long-term beneficiary of Buy Now, Pay Later. Additionally, BofA expects the industry to continue gaining share within ecommerce over time. While the announcement adds headline risk and emphasizes the competitive intensity within the BNPL industry, the impact of the announcement on Affirm seems manageable.
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