© Reuters. Affirm Holdings (AFRM) ABS securitization trends ‘largely encouraging’ – Mizuho
By Sam Boughedda
Mizuho analysts in a note Monday, provided positive commentary for Affirm Holdings (NASDAQ:), stating that ABS delinquencies mostly improved nicely in December.
Affirm shares jumped more than 9% following the upgrade, currently trading around the $15.65 mark.
“ABS securitization trends for December are largely encouraging,” the analysts wrote, adding that Mizuho sees overall delinquencies for Affirm’s “primary non-0% APR trust (2021-B A) declining by almost 20bps vs. the prior month.”
“AFRM’s DQ data for its primary non-0% APR trust were released late last week which bore incrementally encouraging results,” continue the analysts. “Month-over-month trends for this trust improved in December after declining for the first time in months in November.”
The analysts, who have a Buy rating and a $20 price target on Affirm shares, explained that while trends for the new 2022-AA securitization appear to worsen somewhat, this trust is likely too new to draw any major conclusions.
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