Keefe Bruyette downgraded SoFi Technologies to Underperform from Market Perform with a price target of $7.50, up from $5.50. After rallying 142% since the mid-May trough, the company’s valuation “has overshot the fundamental earnings outlook,” the analyst tells investors in a research note. The firm says SoFi’s profitability “will be modest at best” in 2024, with growth rates likely to moderate as capital consumption has to slow. Ultimately, the upside/downside analysis at the current price seems negatively biased, contends Keefe.
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