SoFi (NASDAQ:SOFI) stock is now down by about 16% compared to the closing price on Jan. 29, the day that the company reported its fourth-quarter earnings, effectively wiping out all of its earnings gains. However, UBS analyst Tim Chiodo raised his price target to $8 from $7 this morning while maintaining a “neutral” rating, implying an upside of just below 4% from current prices. UBS first initiated coverage of SoFi in October with a $7 price target and a “neutral” rating.
On TipRanks, Chiodo is ranked at #2,129 among a total of 8,689 Wall Street analysts. He carries a success rate of 50% with an average annual return of 5.1%.
SOFI carries an average price target of $9.25 among 18 analysts with coverage of the stock. That implies an upside of about 20% from current prices. The highest price target sits at $15, while the lowest is $3.
SOFI Stock: UBS Raises Price Target to $8
Chiodo wasn’t the only analyst to adjust his price target following earnings. Goldman Sachs analyst Michael Ng maintained his “neutral” rating and raised his price target to $8 from $7, while Deutsche Bank analyst Mark DeVries maintained his “hold” rating and raised his price target to $12 from $11.
Meanwhile, Morgan Stanley was a bit more bearish. Analyst Jeffrey Adelson lowered his price target to $6.50 from $7 and downgraded his rating to “underweight” from “equal-weight.” Adelson had previously upgraded SOFI stock to “equal weight” from “underweight” last October. His downgrade included this cautionary warning as well:
“However, with shares now more than 20% higher since then, and trading at a P/TBV of ~2.4x, we believe the stock is pricing in too much optimism on the path to 2026 profitability laid out by SOFI, all while staring in the face of a worsening top-line growth outlook for 2024.”
During its earnings, SoFi guided for 20% to 25% compound revenue growth for 2023 to 2026. Despite this, the analyst believes that SOFI stock carries more downside than upside risk and that lending revenue will decline more than other analysts expect. Adelson carries a success rate of 56% and an average one-year return of 10.1% on TipRanks.
On the date of publication, Eddie Pan did not hold (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.
