Affirm Holdings (NASDAQ:AFRM) saw a small boost on Wednesday climbing almost 3% after Evercore ISI made a bold call that caught some investors off guard.
Analyst Adam Frisch admitted it might sound a bit out there to be optimistic about a consumer credit stock right now. Call us crazy, he said, but he believes Affirm has better risk controls than its competitors and enough momentum to grow its user base over time, even in a tough market.
That optimism comes after a rough stretch. Just last week, Affirm had one of its worst trading weeks ever, largely because investors are worried consumers will start pulling back on discretionary spending something that tends to hurt buy-now-pay-later platforms like Affirm.
Still, Frisch thinks the company can hold its ground. With shoppers looking for ways to manage spending more carefully, services like Affirm could become more appealing. And when the economy stabilizes, he believes Affirm will be well-positioned to benefit from renewed consumer demand.
Even so, the risks are real. Klarna, one of Affirm's competitors, recently delayed its IPO, signaling the market's caution. But Evercore sees the current dip as a possible buying opportunity.
This article first appeared on GuruFocus.免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。