---
title: "Morgan Stanley Downgrades Affirm the Day After The Rally"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/290863070.md"
description: "Morgan Stanley downgraded Affirm Holdings from Overweight to Equalweight with a $79 price target, citing balanced risk/reward after recent rallies. This follows a surge driven by a CPP Investments deal for up to $2.2 billion in loans. Meanwhile, Truist raised its target to $80. Market pressure remains due to expectations of Fed rate hikes impacting consumer lending."
datetime: "2026-06-25T17:08:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/290863070.md)
  - [en](https://longbridge.com/en/news/290863070.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/290863070.md)
generator: "portal-rs"
---

# Morgan Stanley Downgrades Affirm the Day After The Rally

Affirm Holdings fell 1.78% in premarket after Morgan Stanley downgraded the buy-now-pay-later company from Overweight to Equalweight, setting a $79 price target and dropping it from the firm's Top Pick list. The bank said risk/reward had become more balanced after Affirm's recovery from its late-March lows, with recent results already showing the GMV durability that drove the original bull case.

The call comes one session after Affirm surged on a forward-flow deal with CPP Investments, where the Canada Pension Plan Investment Board agreed to buy between $1.7 billion and $2.2 billion of Affirm loans over 24 months, supporting roughly $8 billion in loan volume and pushing total funding capacity to $28.2 billion. Truist also raised its target to $80 from $75 the same day, keeping a Buy.

The Fed held rates steady under Chair Kevin Warsh in June, but markets are pricing in an 85% probability of at least one hike by year end, which keeps pressure on consumer lending names like Affirm heading into the back half.

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## Related News & Research

- [Dear Affirm Stock Fans, Mark Your Calendars for August 27](https://longbridge.com/en/news/296951090.md)
- [Affirm Targets Merchant Growth, Calls E-Commerce Opportunity “Enormous”](https://longbridge.com/en/news/297346875.md)
- [Affirm’s Heavy Reliance on Third Parties Raises Regulatory and Compliance Risks](https://longbridge.com/en/news/297474515.md)
- [Ahead of Affirm Earnings, Here's What Barchart Data Says Comes Next for AFRM Stock](https://longbridge.com/en/news/297064074.md)
- [Affirm Beat Last Quarter's EPS Estimate by 76% — Can It Repeat That Thursday?](https://longbridge.com/en/news/297174910.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**