PTON - Affirm Holdings stock slides after Mizuho pares Buy Now Pay Later price targets

Mizuho analyst Dan Dolev trims price targets for Buy Now, Pay Later names after taking into account some potential risks in the sector, namely rising delinquencies, users' increasing debt loads, and users' limited financial flexibility. Overall, delinquency is worsening at major industry participants, he writes, with delinquent receivables nearly quadrupling at Afterpay (OTCPK:AFTPY) vs. recent levels and net charge-offs rising by ~1,000 basis points as a percentage of gross receivables at Sezzle, which isn't publicly traded. Affirm Holdings (NASDAQ:AFRM) stock dips 4.2% after Dolev reduces its price target to $140 from $180. That's based on reducing his base case multiple to 26x from 32x. "The multiple reduction better reflects potential market risks Affirm (AFRM) faces  despite  having significant GMV upside potential from the Amazon (NASDAQ:AMZN) opportunity, in our view," Dolev said. Note that the decline may also be related to Peloton's (NASDAQ:PTON) drop after a character in the "Sex and The City"

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Affirm Holdings stock slides after Mizuho pares Buy Now, Pay Later price targets