Citi analyst Kate McShane started shares of Target (TGT) with a Buy rating and $88 price target. The retailer's new areas of focus will yield positive results, McShane tells investors in a research note. Target is her only Buy rated idea after comparing Costco (COST), Target and Wal-Mart (WMT). She recommends a pair trade of overweight Target, underweight Wal-Mart.

JPMorgan keeps a Neutral rating on Affirm (AFRM) after CNBC reported that One, a Walmart-backed fintech, has begun offering buy now, pay later at certain U.S. Walmart (WMT) locations. The announcement does not come as a complete surprise, as One first announced it was exploring a BNPL service in December 2022, the analyst tells investors in a research note. The firm points out Affirm expanded its relationship with Walmart in December 2023 to offer BNPL at self-checkout kiosks. For the time being, Affirm will remain a funding option at Walmart but will presumably compete head-to-head with One at the point of sale, adds JPMorgan. It believes the news "highlights the importance, foresight and wisdom" of launching the Affirm Card, which makes Affirm a funding option most anywhere Visa is accepted, while reducing Affirm's reliance on merchant-driven promotion and exclusivity. The firm views the Affirm Card as the company's "ace in the hole."

Mizuho analyst Dan Dolev says Affirm (AFRM) shares are lower today following a report that One, backed by Walmart (WMT), has started offering buy now, pay later loans in-store. However, this is not new news, as this was first reported in December 2022, the analyst tells investors in a research note. The firm says history suggests headline risks for Affirm end up being great buying opportunities. It estimates Walmart accounts for 5% of the company's gross merchandise volume and that all the volume likely won't go away. Affirm's total addressable market is in the trillions, so Walmart supporting buy now, pay later expands the visibility of the category, contends Mizuho. The firm keeps a Buy rating on the stock with a $65 price target.

Walmart's (WMT) majority-owned fintech startup One has begun offering buy now, pay later, or BNPL loans for big-ticket items at some of the retailer's more than 4,600 U.S. stores, putting One in direct competition with Affirm (AFRM), the BNPL leader and exclusive provider of installment loans for Walmart customers since 2019, CNBC's Hugh Son and Melissa Repko reported. Reference Link

Shares of Walmart-backed (WMT) Ibotta soared in their market debut, rising more than 30% and giving the digital marketing company a valuation of about $3. 55B... To see the rest of the story go to thefly.com. See Story Here