SoFi Technologies downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler downgraded SoFi Technologies to Neutral from Overweight with a price target of $8, up from $6.50. The downgrade is primarily due to valuation as SoFi is up 107% year-to-date compared to consumer lending peers up 15% on average, the analyst tells investors in a research note. The firm believes some outperformance is warranted, particularly if there is a significant decline in interest rates driving better margins and more attractive lending opportunities. However, with rates moving higher in the past two months, SoFi faces an incremental headwind in the near-term, and Piper is increasingly concerned rates could remain higher for longer due to persistent inflation, says the analyst.