Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

SoFi Stock Pops as Bank of America Upgrades to Buy on Emerging Catalyst Path

Published 09/14/2022, 09:28 AM
Updated 09/14/2022, 09:34 AM
© Reuters.  SoFi Stock Pops as Bank of America Upgrades to Buy on Emerging Catalyst Path

By Senad Karaahmetovic

Shares of SoFi Technologies Inc. (NASDAQ:SOFI) are trading 3% higher on Wednesday after a Bank of America analyst upgraded to Buy from Neutral with a $9 per share price target from $8.

The analyst sees an attractive valuation as SoFi trades at about 1.0x book value as of June 30.

“We see potential for a meaningful catalyst path over the next few quarters as SoFi benefits from the student loan payment moratorium ending and its high-profile NFL-aligned marketing investments drive user growth and engagement,” the analyst wrote in a client note.

In addition to the abovementioned factors, he also argues that the fintech company offers investors FinTech and consumer finance exposure without subprime risk, which is seen as “a key positive in a macro backdrop characterized by heightened uncertainty around the health of the consumer.”

SoFi is also likely to benefit from its NFL marketing campaign.

“Our analysis indicates interest in the SOFI brand inflects higher on Sundays, particularly when LA teams play home games. Member growth was also higher in 2H22 vs. 1H22 and our conversations suggest engagement also increases around football games,” the analyst added.

Net-net, the Bank of America analyst sees potential upside to 2022/23 estimates that could eventually propel SOFI shares higher.

SoFi shares closed at $5.84 on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.