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SoFi shares fall after KBW downgrade on valuation concerns


Published on 2025-01-02 11:00:49 - Reuters
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  • Personal finance app SoFi Technologies' shares fell as much as 7% on Thursday, after analysts at KBW downgraded the stock to "underperform" on concerns over its lofty valuation and ambitious financial targets.

SoFi Technologies Inc.'s shares experienced a decline after Keefe, Bruyette & Woods (KBW) downgraded the company's stock from "market perform" to "underperform" and reduced its price target from $7.50 to $6.50. This downgrade was primarily due to concerns over SoFi's valuation, which KBW analysts believe is too high given the company's current growth trajectory and profitability challenges. The analysts noted that while SoFi has shown strong growth in its lending and technology platforms, the stock's price does not reflect the potential for slower growth and the need for significant investments to maintain its competitive edge. They also highlighted that the market's expectations for SoFi's future earnings might be overly optimistic, leading to a potential correction in stock value.

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[ https://www.reuters.com/business/finance/sofi-shares-fall-after-kbw-downgrade-valuation-concerns-2025-01-02/ ]