SoFi Technologies equity raise concerns overblown, says Mizuho

Mizuho analyst Dan Dolev believes the recent weakness in SoFi Technologies shares stems from investor concerns that the company has limited lending capacity, and may need to raise equity. The analyst, however, is not concerned and sees 6-7 quarters of lending runway for SoFi T without the need to raise capital. The firm’s analysis of the company’s balance sheet shows “ample capacity” to originate personal and student loans for 5-6 quarters, even without selling loans. Mizuho keeps a Buy rating on the shares with a $15 price target.