JMP Securities analyst David Scharf reiterates a Market Perform rating on Affirm into the company’s fiscal Q4 report on August 28. The firm expects to hear “generally positive” commentary from the company, saying Affirm’s largest partners reported strong consumer spending dynamics for the recent quarter, while improving consumer sentiment and interest rate cuts bolster the case for continued scaling of the business. However, JMP remains neutral on the shares. The company’s growth and secular growth of the buy now pay later asset class in North America are balanced out by the stock’s premium valuation, the overhang of potential regulatory actions by the Consumer Financial Protection Bureau regarding credit reporting, decelerating volume growth, and uncertainty associated with the wide range of possible outcomes for its fiscal 2025 guidance based on earlier disclosures, the analyst tells investors in a research note. Thus, the firm sees the stock as fairly valued.