Affirm’s Price Target Slashed to $77 with Sector Perform Rating
RBC Capital cut Affirm’s price target from $87 to $77 while maintaining a Sector Perform rating and noted the company’s 0% APR offers bolstered merchant GMV and protected margins. TD Cowen also trimmed its target from $110 to $95, keeping a Buy recommendation.
1. Analyst Price Target Revisions
RBC Capital lowered Affirm’s price objective by $10 to $77 from $87 while retaining a Sector Perform rating, and TD Cowen reduced its target by $15 to $95 from $110, maintaining a Buy recommendation based on recent earnings momentum.
2. 0% APR Offers Fuel GMV Growth
The firm highlighted that Affirm’s 0% APR financing offers have increased merchant gross merchandise value and preserved unit economics, supporting sustainable margin levels despite competitive financing rates.
3. Client Wallet Platform Switch
In the first quarter, a major business client transitioned to its own wallet platform, leading to a noticeable revenue impact as transactions previously processed through Affirm shifted off its network.