Affirm's (AFRM) funnel remains wide open as consumer health

continues, RBC Capital Markets said in a report Thursday.

The report said its fiscal Q1 results and updated outlook provided positive proof-points that the consumer remains resilient and engaged. It also pointed to the extension of its US deal with Amazon (AMZN) for 5 years.

Late Thursday, the company reported its Q1 results that were ahead of expectations, including for revenue and revenue less transaction costs, the note said. Total active customers on its platform also continued to grow.

RBC kept its sector perform rating on Affirm based on its position as a "leader in the high-growth Buy Now Pay Later" category.

But it cut its price target to $87 from $97 to bring its valuation more in line with similar growth peers.

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