RBC Capital raised the firm’s price target on Affirm (AFRM) to $75 from $70 and keeps a Sector Perform rating on the shares. The firm is updating its model on the stock as the company reaches GAAP operating profitability and assumes a 25% tax rate in FY26E, has Walmart volumes decline in FY26, while ramping UK volume throughout the year, and invests in sales & marketing to drive international growth, the analyst tells investors in a research note. While RBC is cutting Affirm’s FY26 EPS view to 64c from 96c however, it’s higher price target is based on the resilient consumer and the company’s ability to navigate credit stress, the firm added.
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