SoFi Technologies’ Stock Price Takes a Hit After Downgrade
SoFi Technologies’ shares have taken a hit today’s trading after investment firm KBW downgraded the online bank to Underperform from Market Perform. The downgrade is attributed to the company’s “overstretched” valuation, which has risen significantly following its strong rally in 2024.
Analyst’s Concerns
Four-star analyst Timothy Switzer used return on tangible common equity scenarios to assess SoFi’s long-term earnings potential and concluded that the stock’s valuation is excessive. He anticipates a “46% downside from current levels” under a base case with a 10x earnings multiple.
Positives Amidst Downgrade
However, Switzer acknowledged that improving macro conditions and lower interest rates have eased earlier bearish concerns, such as credit and capital issues. The analyst also noted SoFi’s progress in scaling and profitability, which has eased earlier concerns.
Investor Sentiment Remains Positive
In contrast to Switzer’s pessimism, investor sentiment remains very positive towards SoFi Technologies. Although only 2.3% of the portfolios tracked by Market Radar hold SOFI stock, the average weighting for those who do hold shares is over 10%. This implies that investors have a lot of confidence in the company.
Prediction for SoFi Stock
Overall, analysts have a Hold consensus rating on SOFI stock based on five Buys, six Holds, and three Sells assigned in the past three months. After a 68% rally in its share price over the past year, the average SOFI price target of $11.46 per share implies 18.5% downside risk.
Key Takeaways
- SoFi Technologies’ shares have been downgraded to Underperform by KBW due to excessive valuation.
- Analyst Timothy Switzer anticipates a “46% downside from current levels” under a base case with a 10x earnings multiple.
- Investor sentiment remains positive, despite the downgrade.
- The average SOFI price target implies 18.5% downside risk.
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SoFi Technologies’ shares downgraded to Underperform by KBW due to excessive valuation. Analysts predict 46% downside from current levels. What’s next for the online bank? #SOFI #StockMarket #Investing
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SoFi Technologies’ shares have taken a hit after being downgraded to Underperform by KBW. The company’s valuation has risen significantly following its strong rally in 2024, leading analyst Timothy Switzer to predict a “46% downside from current levels.” Despite the downgrade, investor sentiment remains positive, with an average weighting of over 10% for those who hold shares.
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SoFi Technologies’ Stock Price Takes a Hit After Downgrade
SoFi Technologies’ shares have taken a hit today’s trading after investment firm KBW downgraded the online bank to Underperform from Market Perform. The downgrade is attributed to the company’s “overstretched” valuation, which has risen significantly following its strong rally in 2024.
Analyst’s Concerns
Four-star analyst Timothy Switzer used return on tangible common equity scenarios to assess SoFi’s long-term earnings potential and concluded that the stock’s valuation is excessive. He anticipates a “46% downside from current levels” under a base case with a 10x earnings multiple.
Positives Amidst Downgrade
However, Switzer acknowledged that improving macro conditions and lower interest rates have eased earlier bearish concerns, such as credit and capital issues. The analyst also noted SoFi’s progress in scaling and profitability, which has eased earlier concerns.
Investor Sentiment Remains Positive
In contrast to Switzer’s pessimism, investor sentiment remains very positive towards SoFi Technologies. Although only 2.3% of the portfolios tracked by Market Radar hold SOFI stock, the average weighting for those who do hold shares is over 10%. This implies that investors have a lot of confidence in the company.
Prediction for SoFi Stock
Overall, analysts have a Hold consensus rating on SOFI stock based on five Buys, six Holds, and three Sells assigned in the past three months. After a 68% rally in its share price over the past year, the average SOFI price target of $11.46 per share implies 18.5% downside risk.
Key Takeaways
- SoFi Technologies’ shares have been downgraded to Underperform by KBW due to excessive valuation.
- Analyst Timothy Switzer anticipates a “46% downside from current levels” under a base case with a 10x earnings multiple.
- Investor sentiment remains positive, despite the downgrade.
- The average SOFI price target implies 18.5% downside risk.
Upcoming Events
- SoFi Technologies’ next earnings report: [Insert Date and Time]
- Market Radar’s analysis of SoFi’s valuation: [Insert Link]
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