- Mizuho analyst Dan Dolev recommended buying shares of Affirm Holdings, Inc AFRM on yesterday’s weakness and reiterated a Buy rating on the name with a $42 price target.
- The U.S. Consumer Financial Protection Bureau looked to regulate “buy-now, pay-later” companies like Klarna and Affirm following concerns that their fast-growing financing products are harming consumers.
- CFPB director Rohit Chopra disclosed that the CFPB would issue guidance or a rule to align sector standards with credit card companies and implement appropriate supervisory examinations.
- Dolev considered the Consumer Financial Protection Bureau’s buy now pay later report as “less harmful than feared.”
- The “lack of a clear call for action is a positive,” he noted.
- Instead, the CFPB says it will be “working with state regulators…on examinations of these firms.”
- Moreover, while they identified significant risks like offering similar rights and protection to credit card companies, they also praised BNPL, citing lower financial costs versus legacy products which is a positive sign.
- Price Action: AFRM shares traded lower by 4.11% at $23.01 on the last check Friday.
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