SoFi Q2 helped debunk many bear arguments, says Mizuho

Mizuho says that although SoFi Technologies reported a “strong and clean quarter,” the stock “failed to obtain the momentum it deserved.” The firm believes the Q2 results “helped debunk many of the bear arguments” by including the vintages net cumulative losses. Showing sequential declines in personal loan delinquencies should also help allay further credit concerns in the near-term as delinquencies are a leading indicator for charge-offs, the analyst tells investors in a research note. Mizuho remains upbeat about SoFi and believes “bears will eventually fade” as management continues to execute. It keeps an Outperform rating on the shares with a $12 price target.