Mihir Bhatia, an analyst from Bank of America Securities, reiterated the Sell rating on SoFi Technologies (SOFI – Research Report). The associated price target remains the same with $13.00.
Mihir Bhatia has given his Sell rating due to a combination of factors affecting SoFi Technologies. The primary concern is the reduced growth outlook for SoFi’s tech segment, which includes the Galileo and Technisys platforms. Originally projected to grow in the mid-20% range from 2023 to 2026, the outlook has been cut to the mid-teens. This adjustment is attributed to longer lead times and implementation cycles as the company targets larger clients.
Bhatia also notes that while SoFi’s strategic focus on expanding its client base beyond neo-banks is a positive move, the competitive landscape remains challenging. The presence of established and new dynamic players makes it difficult for SoFi to increase its market share. Despite solid execution, Bhatia believes that the current valuation of SoFi’s stock is ahead of its fundamentals, leading to the Underperform rating.
In another report released on March 4, KBW also maintained a Sell rating on the stock with a $8.00 price target.