Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTWajeeh KhanThu, June 25, 2026 at 10:37 PM GMT+2 2 min readBuy Sell cards by Kelly Sikkema via UnsplashMorgan Stanley downgraded Affirm (AFRM) from "Overweight" to "Equal Weight" on June 25, simultaneously removing the stock from its Top Pick list. Analyst James Faucette characterized the move as a "valuation call" rather than a structural one — emphasizing that the firm's long-term conviction on AFRM's positioning remains fully intact.More News from BarchartMark Cuban Says There Are Some 'Greedy Blood-Sucking Business People That Will Do Anything for a Dollar' But 'Eat the Rich' Only Helps PoliticiansStocks Rally Before the Open on Upbeat Micron Earnings, U.S. PCE Inflation Data in FocusStocks Settle Mixed on Apple Weakness and Chipmaker StrengthStop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!At the time of writing, Affirm stock is trading just 4% above its price at the start of this year.www.barchart.comWhy Morgan Stanley Downgraded AFRM SharesThe downgrade comes after AFRM shares surged more than 80% from their March 27 close, a rally that Morgan Stanley believes has brought the stock to fair value. The bank noted that three key concerns underpinning its original bullish thesis — GMV durability, funding execution, and credit performance — have largely been resolved, with the fintech company demonstrating best-in-class execution across asset-backed securities and forward flow channels.Morgan Stanley's fiscal 2028 earnings per share (GAAP) estimate for Affirm Holdings has risen to $3.37 from $2.95 in early February, well above the street consensus of $2.50.However, the bank argued that further significant upward revisions toward $4.50 to $5.00 in FY28 GAAP EPS would be needed to justify continued active sponsorship at current levels. This sets a high bar for re-engagement with the name.Long-Term Thesis for Affirm Stock Remains IntactOn June 25, Morgan Stanley left its $79 price target unchanged, describing its posture as stepping to the sidelines while awaiting a more attractive entry point. Faucette continued to describe Affirm shares as one of the highest quality fintech assets in the bank coverage, citing best-in-class management, differentiated product capabilities, and direct exposure to secular buy-now-pay-later (BNPL) category share gains.A separate research firm recently highlighted BNPL companies as a widely overlooked investment theme, pushing back against narratives that the sector represents systemic risk and pointing to fundamental misunderstandings of the business model's accounting mechanics under GAAP. Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info