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RBC Capital cuts Affirm to Sector Perform on higher funding costs, slower sales
The Fly

RBC Capital cuts Affirm to Sector Perform on higher funding costs, slower sales

As previously reported, RBC Capital analyst Daniel Perlin downgraded Affirm to Sector Perform from Outperform with a price target of $17, down from $23, after its Q2 earnings miss. The combination of higher funding costs, latency effects of pricing actions, and expected deceleration in gross merchandise volume in the second half of this year suggest a more challenging environment up ahead, the analyst tells investors in a research note. While Affirm management reiterated its commitment to achieving operating income by year-end, the firm is now "less convinced that it will be successful".

Published first on TheFly

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