Macquarie analyst Sarah Hindlian calls Workday's (WDAY) contract with Wal-Mart (WMT) a "significant win" but cautions against sizing the deal in the $30M-$60M upside billings range for Q4 and FY18. She believes Workday prices part-time employees at between 12.5%-25% the cost of full-time employees, and notes that the New York Times reported that at least half of Wal-Mart's hourly-wage employees work part time. In addition, the ramp and implementation times are lengthy, and invoicing of a deal this size is unlikely to be annual, Hindlian wrote yesterday in a research note. The analyst keeps an Underperform rating on Workday with a $56 price target. She continues to believe pricing in the Human Capital Management market is under pressure and that competition is rising. Workday closed yesterday up $7.35 to $81.70 after disclosing the Wal-Mart contract win.

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