Affirm ( NASDAQ: AFRM ) stock dipped 1.9% in Friday premarket trading even after Truist analyst Andrew Jeffrey reiterated a Buy rating on the Buy Now, Pay Later provider, arguing that the risk of the Consumer Financial Protection Bureau's plan to start regulating BNPL is likely overstated.
The consumer watchdog's recent announcement reflected its concerns about BNPL lender's fast-growing financing products impacting consumers negatively, namely through uneven disclosures and protections broadly.
Jeffrey, meanwhile, sees little risk for AFRM given its best-in-class disclosure, consumer pricing and lack of fees, he wrote in a note to clients.
"It is our view that more uniform oversight, disclosure and data rules will benefit Affirm as the market leader and best-practices provider," Jeffrey highlighted, adding that Affirm ( AFRM ) "is the best run BNPL co, offering clear and transparent disclosure."
Seeking Alpha's Quant rating, SA Authors' rating and the average Wall Street Analyst view of Hold disagrees with Jeffrey's Buy rating. Shares of AFRM were down over 41% in the past month and 75% year-to-date.
Take a look at why SA contributor Bert Hochfeld justifies Affirm with a Buy ratin g.
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Affirm called a Buy at Truist as risk of new CFPB oversight 'probably overstated'