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© Reuters. ‘Promote Now, Purchase Later’: Wedbush Begins BNPL Inventory Affirm (AFRM) at Underperform
By Senad Karaahmetovic
Wedbush analyst David Chiaverini began analysis protection on Affirm (NASDAQ:) at Underperform with a $15.00 per share value goal.
The analyst sees an almost 40% draw back threat in Affirm shares because of slowing progress and rising charges.
Furthermore, Chiaverini is worried “about Affirm’s path to GAAP profitability, growing competitors within the purchase now, pay later (BNPL) house, business forecasts calling for slowing e-commerce gross sales (which drive Affirm’s gross merchandise quantity, or GMV), and its capacity to cowl its price of capital as funding prices enhance.”
The analyst additionally talked about a “wealthy” valuation because the BNPL inventory trades at a premium to different neobanks and shopper finance leaders.
“AFRM trades at 3.7x our 2023 gross sales forecast in comparison with neobank friends at 2.9x and conventional shopper finance friends at 1.4x. Our $15 goal is predicated on AFRM buying and selling at 1.9x our 2026 income forecast discounted again to 2023 at 15% yearly.”
Affirm shares are down almost 5% right now.
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