SoFi crashes price target as investors show ‘more continued interest’
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Last month, SoFi reported strong deposit numbers for the second quarter and beefed up its financial guidance.
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Investors are constantly becoming more interested
SoFi Technologies
Citi analysts said they raised their price target for the fintech stock.
Citi analysts maintain their Buy rating
SoFi
(Stock ticker: SOFI) and cut its price target to $12 from $10 in a report on Wednesday, reflecting a higher revenue estimate for 2024, among other factors. The analyst also noted SoFi’s strong second-quarter results and the optimism expressed by those present at the so-called Unreal Roadshow, or NDR, with CFO Chris Lapointe.
“Investors we met during the NDR seem optimistic — in our view, we’ve moved beyond the occasional/event-driven interest of the past into a more sustained interest in the core tenets of the SoFi story,” Citi analysts wrote in the report. “Balance sheet growth, capital planning, student loan recovery, profitability goals, and technology sector growth were among the topics discussed.”
Last month, SoFi delivered strong deposit numbers for the second quarter and beefed up its financial guidance. Origin volumes for personal loans and home loans beat Wall Street expectations, although student loan volumes declined.
Analysts were mixed on the stock, with 35% rating it Buy, 45% Neutral and 20% Sell, according to FactSet.
SoFi shares rose 0.4% to $8.30 in Thursday trading. This year, shares are up 80%.
Write to Emily Dattilo at emily.dattilo@dowjones.com