This Analyst Is Dead Wrong About SoFi. Here's Why.
Shares of SoFi Technologies (NASDAQ: SOFI) started 2024 on a rough note, falling more than 16% last week after Keefe, Bruyette & Woods (KBW) analyst Mike Perito downgraded shares of the banking and fintech services company. More specifically, Perito reduced his rating on SoFi to underperform from market perform, and lowered his per-share price target to $6.50 from $7.50. Shares closed around $8.53 on Monday.
To be fair, SoFi had also just doubled over the previous year, including a more than 40% rally following its impressive third-quarter results in early November. So it's hard to blame some on Wall Street for taking a more cautious stance on the stock. But even putting aside the fact that I'm happy to have a chance to add to my own position at these lower prices, I think this analyst is dead wrong in his bearish call.
"SOFI's shares remain polarizing, but noise aside, anytime a growth stock is trading at premium valuations with 15% to 20% downside potential to consensus EBITDA, we believe a more cautious stance is appropriate," KBW wrote in its note to clients.
Source Fool.com
