![]() “Net/net,” Horgan summed up, “Our base-case price target of $30 and downside case of $17 reflects asymmetrical risk/reward to the upside.” The upside potential in reaching $30 is exactly 62% from current levels. While the analyst also expects other lockup/trading restrictions which will be lifted before the end of the year to add pressure to the shares, there are additional catalysts to take into consideration.įor one, demand for SOFI's core lending products should get a boost from the Federal student loan forbearance which is slated to end on October 1.įurther ahead, a Fed rate hike - which Horgan estimates there’s a 40% chance will take place by 7/27/22 - is another “longer-term tailwind,” especially if SOFI receives a bank charter as it supports the generation of higher net interest income (NII). can trust NerdWallets picks: Our writers and editors together have more than 50 years of experience writing about finance. ![]() Even if the fintech disruptor’s application is denied, with the current depressed share price, Horgan believes the “upside potential of approval outweighs the downside pressure of not getting approved.” The bank charter approval (or denial for that matter) is expected in November. However, we expect SOFI's bank charter approval process to conclude before year-end (adding >25% upside to our EBITDA estimates).” (NASDAQ: SOFI), the digital personal finance company, today announced plans to host its 2023 annual meeting of. “Pressure from early investors taking profits (and short-selling ahead of the lock-up expiration) are likely to weigh on the stock in the near term. SAN FRANCISCO, - ( BUSINESS WIRE )-SoFi Technologies, Inc. “We see a unique buying opportunity as a result of this recent selling and ahead of a potentially significant upside catalyst (bank charter approval),” the analyst said. The fear is the market will be saturated with an overflow of shares which will drive the price down.Ĭonsidering the case for the lock-up expiration of SoFi Technologies ( SOFI) shares today (Monday 6/28), Rosenblatt Securities’ Sean Horgan has a clear idea what investors should do. This is the moment when the early comers, generally large shareholders, are finally allowed to offload shares on the market. Lock-up expirations are traditionally bad news for investors. ![]()
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