Affirm added to ‘Tactical Underperform’ list at Evercore ISI

Evercore ISI is adding Affirm (AFRM) to the firm’s “Tactical Underperform” list as the analyst thinks the risk/reward is less favorable heading into next week’s earnings report with shares up 115% since early April and 18% since August 1. The firm still believes Affirm has the best risk platform in the space and will benefit over the longer-term from penetration in new verticals and geographies as well as product expansion, but some profit taking is possible, even on a solid print, and Evercore sees low potential for this “typically conservative management team to guide materially higher” than consensus estimates. The firm has an Outperform rating and $67 price target on Affirm shares, calling its move “a short-term Underperform addition.”