SoFi Technologies (NASDAQ:SOFI) stock is dipping lower on Tuesday after the financial services company’s shares were downgraded.
KBW analyst Michael Perito is behind this news. He downgraded shares of SOFI stock from a “market perform” rating to an “underperform” rating. For comparison, the analysts’ consensus rating for SOFI shares is “hold” based on 16 opinions.
Despite the downgrade, the KBW analyst increased his price target for SOFI stock from $2 to $7.50 per share. However, that still represents a potential downside of 34.5% for the stock. It’s also below the analysts’ consensus price prediction of $8.20 per share.
What’s Behind the Bearish SOFI Stock Rating
Here’s what Perito had to say about SoFi in a note to clients obtained by CNBC:
“We believe valuation has overshot the fundamental earnings outlook. Overall, we believe investors face a unique set of risks this early on in such a high-growth story, and see the upside/downside as negatively biased after recent outperformance in 2Q23.”
As for how this rating is affecting SOFI stock today, some 3.5 million shares have changed hands as of this writing. For the record, the company’s daily average trading volume is still well above that at roughly 57 million units.
SOFI stock is down 4.7% as of Tuesday morning but is still up 142.3% since the start of the year.
Investors looking out for even more of the most recent stock market news today will want to keep reading!
We have all of the latest stock market news that traders need to know about on Tuesday! That includes everything investors need to know about shares of OKYO Pharma (NASDAQ:OKYO), Polished.com (NYSEMKT:POL), and TradeUP Acquisition (NASDAQ:UPTD) stock moving today. You can find more on these matters at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
