SoFi Technologies initiated with a Neutral at JPMorgan

JPMorgan analyst Reginald Smith initiated coverage of SoFi Technologies with a Neutral rating and $6 price target. While he likes SoFi’s product breadth and strategy to be "the full-service bank for highly educated, digitally inclined consumers," the company is "caught in the vortex of a once-in-a-generation Fed tightening cycle" that could lead to loan write-downs that are not appreciated by the Street, Smith tells investors. Though he thinks the company will ultimately be a winner in the neo/digital bank space, he also thinks shares will be plagued by skepticism weighing on consumer credit names more broadly given SoFi’s growing unsecured personal loan exposure, the analyst added.