BNPL Sector Faces Student Loan Headwinds - Analyst Highlights Affirm, Block, and PayPal
Portfolio Pulse from Anusuya Lahiri
The upcoming student loan repayments may impact the 'buy now, pay later' (BNPL) sector, potentially causing a 2% setback. However, Mizuho analyst Dan Dolev remains optimistic, reiterating Buy ratings on Affirm Holdings, Inc (AFRM), Block, Inc (SQ), and PayPal Holdings, Inc (PYPL). A survey revealed that half of the active BNPL users are dealing with student loans, but those with loans reported an income surplus of $10,000 compared to their loan-free counterparts. The survey also found a positive correlation between the number of BNPL platforms a user is on and their income bracket.
August 15, 2023 | 7:36 pm
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NEUTRAL IMPACT
Affirm Holdings, Inc (AFRM) may face challenges due to the upcoming student loan repayments, but the company has been given a Buy rating by Mizuho analyst Dan Dolev.
The upcoming student loan repayments may cause a setback for the BNPL sector, which includes AFRM. However, the company has been given a Buy rating by a Mizuho analyst, indicating potential resilience.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
PayPal Holdings, Inc (PYPL) may be impacted by the upcoming student loan repayments, but the company has been given a Buy rating by Mizuho analyst Dan Dolev.
The upcoming student loan repayments may cause a setback for the BNPL sector, which includes PYPL. However, the company has been given a Buy rating by a Mizuho analyst, indicating potential resilience.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Block, Inc (SQ) may be affected by the upcoming student loan repayments, but the company has been given a Buy rating by Mizuho analyst Dan Dolev.
The upcoming student loan repayments may cause a setback for the BNPL sector, which includes SQ. However, the company has been given a Buy rating by a Mizuho analyst, indicating potential resilience.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80