SoFi Technologies stock rating downgraded by Citizens JMP on valuation

Investing.com - Citizens JMP analyst Devin Ryan downgraded SoFi Technologies (NASDAQ:SOFI) from Market Outperform to Market Perform on Monday. According to InvestingPro data, the stock’s technical indicators suggest it’s in overbought territory, with shares trading near their 52-week high of $21.86.

The downgrade comes after SoFi shares have risen significantly since Citizens JMP formally launched coverage on April 25, when the stock was trading at approximately $12. The stock has delivered an impressive 204% return over the past year, with a market capitalization now reaching $23.4 billion.

The firm previously maintained a price target of $17 for SoFi, which it has now removed as part of the rating change to Market Perform.

Citizens JMP acknowledged SoFi’s strengths, including its modern technology infrastructure, effective marketing efforts driving membership growth, and the advantages of its bank charter that allows the company to own the full economic value chain.

The firm also noted that SoFi has reached profitability, positioning it to invest in future growth without external funding needs, and has recently announced its push back into cryptocurrency services beyond just trading.

In other recent news, SoFi Technologies has announced several developments that are of interest to investors. The company is set to launch international money transfer and cryptocurrency investing services later this year, utilizing blockchain technology for efficient fund transfers and offering trading in Bitcoin and Ethereum. Additionally, SoFi has expanded its alternative investments platform to include new private markets funds, providing retail investors access to companies like OpenAI and SpaceX. On the financial front, Keefe, Bruyette & Woods raised its price target for SoFi to $13, citing revenue opportunities from new initiatives, though it maintains an Underperform rating. Meanwhile, JPMorgan has reiterated its Neutral rating with a $16 price target, highlighting potential market gains from recent legislative changes affecting graduate loans. In corporate governance, SoFi shareholders have elected board members and approved executive compensation at the recent annual meeting. The company continues to grow its membership, now serving over 10.9 million members through its financial services platform. These updates reflect SoFi’s strategic efforts to expand its service offerings and enhance shareholder value.

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