Piper Sandler Downgrades SoFi Technologies (SOFI) to Neutral 'Due to Valuation

Piper Sandler analyst Kevin Barker downgraded SoFi Technologies (NASDAQ: SOFI) from Overweight to Neutral with a price target of $8.00 (from $6.50).

The analyst comments "We are lowering our rating on SOFI to Neutral from Overweight and adjusting our price target to $8 from $6.50. The change in our rating is primarily due to valuation. SOFI is up 107% YTD compared to consumer lending peers +15% on average and a basket of fintech stocks down ~10%. We believe some outperformance is warranted, particularly if we were to see a significant decline in interest rates driving better margins and more attractive lending opportunities (i.e. student loans). However, we have seen rates actually move higher in the past two months, which will be an incremental headwind in the near-term, and we are increasingly concerned rates could remain higher for longer due to persistent inflation. That being said, we continue to believe SOFI will be a long-term winner with the company generating outsized growth within a valuable customer cohort (high income, strong credit quality, self-sufficient customers)."

For an analyst ratings summary and ratings history on SoFi Technologies click here. For more ratings news on SoFi Technologies click here.

Shares of SoFi Technologies closed at $9.55 yesterday.

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