Keefe Bruyette upgrades SoFi to Market Perform after selloff

Keefe Bruyette upgraded SoFi Technologies to Market Perform from Underperform with a price target of $7.50, up from $6.50. The analyst cites valuation for the upgrade with the shares down 24% year-to-date. The firm continues to have questions about the sustainability of SoFi’s earnings and capital over the long-term, but believes the share price decline and recent capital raise “remove much of the risk of negative catalysts to investors over the near-term.” The company’s actions to pay down debt improved the earnings outlook, while raising common equity expanded the length of time it can continue originating loans without a meaningful increase to sale activity, says Keefe. It sees a more balanced risk/reward at current share levels.