SoFi Technologies is experiencing a decline in its stock price following a downgrade by Bank of America (BofA). The financial services company was cut to an "Underperform" rating, with a new price target set at $12. This downgrade reflects BofA's concerns about SoFi's future performance and valuation, suggesting that the stock may face challenges in meeting market expectations. The revised price target indicates a potential downside from the current trading levels, which has likely contributed to the negative sentiment among investors.
The downgrade by BofA comes amid a broader consensus among analysts, with SoFi holding a "Hold" rating based on 12 analyst ratings. The average price target for SoFi is $10.36, which represents a significant downside from its previous close. This suggests that analysts are cautious about the company's near-term prospects, possibly due to competitive pressures or macroeconomic factors affecting the financial technology sector.
SoFi Technologies (SOFI) shares are down 1.75% to $15.74 as of 7:41 am on December 9th, compared to its previous close of $16.02 on December 6th.