Affirm resumed with an Outperform at BMO Capital

BMO Capital resumed coverage of Affirm (AFRM) with an Outperform rating and $69 price target The shares are down over 40% from recent highs as investors de-grossed and now contemplate a higher probability of recession, the analyst tells investors in a research note. BMO’s forecasts assume a mini credit cycle in fiscal 2026, but it sees a path to $4.00 in adjusted earnings per share for Affirm by fiscal 2027 in a normalized credit environment. Expectations for the company appear to contemplate a steep deceleration, despite accelerating direct to consumer growth, strong momentum supporting Affirm at Checkout, and tailwinds from lower interest rates, contends BMO.