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Investing.com — SoFi Technologies Inc. (NASDAQ:SOFI) stock fell 7.6% Tuesday after analysts at Mizuho trimmed its price target, and Goldman Sachs (NYSE:GS) Goldman Sachs started the stock at Neutral.
Mizuho analyst Dan Dolev cut the price target on SoFi by over 40% to $17 from $30.
In a client note, the analyst told investors the reduction in price target was due to “the impact of warrant redemptions in December and our medium-term adj. EBITDA expectations.”
Dolev added that it also reflects the longer-term expectations from the company’s management of achieving an incremental earnings before interest, taxes, depreciation and amortization margin.
Goldman Sachs analyst Michael Ng initiated coverage of SoFi with a neutral rating and a $16 price target.
While Ng was somewhat positive in his note stating “a SOFI bank charter could provide upside optionality,” the analyst’s comments further down will have weighed a little on the company’s share price.
“With SOFI trading at ~10X 2022 EV/sales, we view SOFI’s growth opportunity as largely reflected in current valuations,” he stated.
SoFi shares are currently trading around the $12.22 mark.
