Mizuho analyst Dan Dolev revisited its Affirm Holdings, Inc (NASDAQ: AFRM) securitization trust and delinquency tracker.
With the updated data points for Calendar 2Q, trends look slightly less optimistic versus April, noted Dolev.
Data for May shows a slight change from April, as 30- day delinquencies for significant non-0% APR trusts accelerated.
On a more positive note, he noticed modest improvements mainly in both trusts' 60- and 90-day delinquency classifications.
He expects the upcoming June data to be the critical determinant of sentiment for AFRM.
Although Dolev remains bullish on Affirm's enterprise partnerships, the multiple reflects the recent double-digit decline in payments/fintech multiples and the rising risk of further delinquencies and charge-offs.
Dolev reiterated a Buy with a price target of $50 (154% upside).
Price Action: AFRM shares traded higher by 2.52% at $19.69 on the last check Wednesday.
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