According to Barker, the reasons behind the price target cut were the issuance of the quarterly SEC filing and recent commentary from management. These factors likely influenced the analyst's assessment of the company's future prospects and valuation.
Barker acknowledged that SoFi is expected to experience a "sizable increase in spread income" due to a much larger asset base compared to the previous fiscal year. However, the analyst cautioned that this positive trend would be offset by a $400 million headwind resulting from higher net charge-offs (NCOs) and premium amortization on the personal loan portfolio.
Currently, 40% of top-rated analysts view SoFi as a Strong Buy or Buy, while 60% consider it a Hold. Notably, no analysts recommend or strongly recommend selling the stock. This suggests a mixed sentiment among analysts regarding the future performance of SoFi Technologies.
Looking at the stock's recent performance, SoFi's price has declined by 16% since its last quarterly report on September 30, 2023. However, on a year-over-year basis, the stock has seen an increase of 21.3%. It is worth noting that during this period, SoFi has outperformed the S&P 500, which has recorded a gain of 14%.
Kevin Barker, the Piper Sandler analyst who issued the updated rating and price target, is ranked in the top 7% out of 4,399 Wall Street analysts by WallStreetZen. Barker has an average return of 11.2% and a win rate of 61.5%. The analyst specializes in the Technology, Real Estate, and Financial Services sectors.
SoFi Technologies, Inc. is a digital financial services provider operating through three segments: Lending, Technology Platform, and Financial Services. The company offers a range of lending and financial products, allowing its members to borrow, save, spend, invest, and protect their money. These offerings include student loans, personal loans for debt consolidation and home improvement projects, and home loans. SoFi also provides cash management, investment, and technology services. Additionally, the company operates Galileo, a technology platform serving financial and non-financial institutions, and Apex, a technology-enabled platform offering investment custody and clearing brokerage services. Technisys, SoFi's cloud-based digital multi-product core banking platform, is another component of its business. The company was founded in 2011 and is headquartered in San Francisco, California.
WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).
Create a free watchlist and be the first to know when top-rated Wall Street analysts revise their Sofi Technologies average price target.
Want to get in touch? Email us at email@example.com.
WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.