Affirm wallet partnership ‘path worth following’ by Block, says Morgan Stanley

Morgan Stanley analyst James Faucette, which notes that the firm has previously advocated that Block (SQ) management should forego efforts to build its own digital wallet and instead look to accelerate availability and acceptance of its Cash App payment capabilities, cites Affirm’s (AFRM) decision to partner with Apple Pay (APPL) as “a path worth following” by Block. The firm, which still thinks that Block should eventually pursue a partnership with existing digital wallet brands rather than trying to build its own, contends that compromising the potential to “close the loop” is “a low price to pay.” Morgan Stanley maintains an Underweight rating and $60 price target on Block shares.