The shares of Toast AffirmMoffettNathanson analysts said Tuesday that the companies’ long-term growth prospects were likely to fail.

Toast, a point of-sale software provider for restaurantsAs of Tuesday afternoon,, had fallen 11% and Affirm (which offers consumers the option to “buy now and pay later”), dropped by over 8%.

MoffettNathanson covered six companies including Toast and Affirm in its report “Fintech is down but not out” Two-dozen fintech businesses went public in an IPO, or other special purpose acquisitions company during the time period of June 2020 to 2021. 19 companies are down significantly since listing and valuations continue to be a problem.

Analysts advised that investors should exercise caution. Some Fintech companies with high growth are trading now at values that reflect the size of their growth potential and their quality unit economics. Others remain too costly.

The price of Toast fell almost 50% from September’s IPO, and Affirm has fallen slightly from January 2021.

Toast, out of the 22 companies listed in MoffettNathanson’s research report was given a Sell rating. According to MoffettNathanson’s report, Toast was initiated with a price target of $19. This is a decrease from Monday’s close price at $24.05.

Toast’s reliance on a single industry — food services — means Toast is going after a “relatively narrow slice of the payments market,” the analysts wrote. Toast received a big boostRestaurants added mobile payment and order options during the pandemic. In 2021, revenue more than doubled

MoffettNathanson stated that Toast is now facing “fierce competitors” which could cause “downward pressure on its profit yield.”

Affirm received the equivalent to a hold rating by the analysts and was given a price target of $50. The stock closed Monday at $47.70.

Affirm, like Toast faces increased competition from BNPL providers. The analysts stated that the lender Affirm is also looking into the possibility of rising financing costs as well as “a sharp deterioration in the U.S. credit climate”.

Despite their pessimistic outlooks on these two companies, analysts provided a positive outlook on digital banking in general and integrated POS providers that are gaining traction within sectors such as retail, hospitality, and other services.

Analysts predict that digital banks will still be able to take market share away from banks and credit unions that struggle to keep pace with technological demands.

The authors wrote, “We see strong secular tailwinds that last for a long time in both verticals.”

WATCH: CNBC’s full interview with Affirm CEO Max Levchin