Deutsche Bank Cautious on SoFi Technologies (SOFI)

Deutsche Bank analyst Mark DeVries reiterated a Hold rating and $12.00 price target on SoFi Technologies (NASDAQ: SOFI).

The analyst comments "SoFi had an eventful quarter involving several capital structure transactions that drove a sharp reaction in their share price. Their recent convertible debt issuance should reduce their effective interest rate albeit at the expense of modest shareholder dilution. Despite the additional shares, management was quick to point out that EPS will not be diluted after the transaction due to the interest and preferred dividend savings. We felt the recent market reaction was disproportionate but expected given their volatile nature and sizable retail shareholder base. We remain a Hold on the stock as we view SOFI to be a show-me story and believe their non-lending segments need to show consistent growth and benefits of scale to support their FinTech-like valuation."

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 $7.56 yesterday.

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