Goldman Sachs analyst Will Nance raised the firm’s price target on Affirm (AFRM) to $56 from $50 and keeps a Buy rating on the shares after the company pushed an 8K filing in which it noted that Walmart (WMT) comprised 5% of its gross merchandise volume and 2% of operating income. In terms of incremental thoughts on the announcement, given the new information, the firm sees the financial impact on Affirm as much lower. Goldman sees this as a function of Walmart’s history with third party credit providers, and believes overall that the low the profitability of this portfolio is indicative of the difficulty of underwriting the lower end customer base of Walmart and relatively lower level of profitability that Walmart likely negotiates its vendors to.
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