Why Is Affirm Holdings Stock Falling Today?
Portfolio Pulse from Anusuya Lahiri
Affirm Holdings, Inc (NASDAQ:AFRM) stock is trading lower after Piper Sandler analyst Kevin J. Barker downgraded the stock from Neutral to Underweight with a price target of $11.00. Barker expects higher rates to pressure operating margins as AFRM needs to hold more loans on the balance sheet. He also expects tighter underwriting standards, increased pricing, and the re-introduction of student debt payments to cause a slowdown in revenue growth over the next year.
July 06, 2023 | 12:09 pm
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Affirm Holdings' stock is expected to face pressure due to higher rates, tighter underwriting standards, and increased pricing. The analyst's downgrade and lower price target could negatively impact the stock in the short term.
The downgrade by Piper Sandler's analyst from Neutral to Underweight, along with a lower price target, indicates a negative outlook for Affirm Holdings. The expected higher rates and tighter underwriting standards could pressure the company's operating margins and slow its revenue growth, which could negatively impact the stock price.
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