Loop Capital initiated coverage on three consumer fintech stocks Tuesday, giving buy ratings to Affirm and Dave while placing Klarna on hold. The firm cited strong growth momentum at Affirm and Dave, but flagged credibility concerns at Klarna after a third negative guidance surprise as a public company.
Loop Capital started coverage on Affirm Holdings with a buy rating on Tuesday. The firm also initiated Dave Inc with a buy rating, while giving Klarna a hold rating over management credibility.
Affirm and Dave draw buy ratings
Loop Capital set a $105 price target on Affirm, representing 46% upside from its $72.08 stock price. The firm called Affirm one of the highest-quality growth stories in consumer fintech, pointing to a company that powers more than $50 billion in annual gross merchandise volume across more than 27 million consumers and over 500,000 merchants. Loop Capital sees a path to sustained growth of more than 25% in both GMV and revenue, citing expanding distribution through Stripe and Adyen along with the Affirm Card. Revenue grew 32% over the last twelve months, and five analysts have recently revised earnings upward.
Dave Inc received an even higher target: $500, at the upper end of Wall Street's $350-to-$490 range. Loop Capital called Dave's small-dollar cash-advance product, ranging from $50 to $500 before payday, one of the most compelling monetization opportunities in fintech. The company has more than 3 million highly engaged monthly users and, the firm said, an underwriting model that reads default signals faster than any lender in its coverage universe. Dave shares have delivered a 73% return over the past year and trade at $376.38.
Klarna held back by credibility concerns
Klarna drew a different verdict. Loop Capital set an $18.00 price target for Klarna. Shares fell nearly 50% year-to-date and pulled back 26% since second-quarter 2026 results. The stock now trades at $14.26, down from a 52-week high of $57.20. The firm said it is willing to extend management some grace for an unexpected accounting change, but it criticized Klarna's third negative guidance surprise as a public company, calling the pattern increasingly difficult to dismiss.
Loop Capital said management needs to restore investor credibility before the stock can work, even as it still sees a compelling long-term opportunity in Klarna's global scale, merchant network and expanding product suite. Despite the selloff, the firm added, shares don't look especially cheap on 2027 adjusted operating profit estimates.
Sources: Investing.com (Affirm), Investing.com (Klarna), Investing.com (Dave)
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