Can Weakening Credit Quality Impact SoFi Technologies Fair Value Marks? Analysts See Tech Growth, Comfortable Total Capital Ratio
Portfolio Pulse from Nabaparna Bhattacharya
SoFi Technologies, Inc. (NASDAQ:SOFI) reported Q1 2024 results with a 26% year-on-year revenue increase to $580.648 million, surpassing expectations. EPS was $0.02, beating the consensus of $0.01. Despite this, concerns over weakening credit quality and its impact on fair value marks, along with potential challenges in achieving 20% tech revenue growth guidance for FY24, have led to a decrease in SOFI shares by 4% to $6.76. Wedbush analyst David J. Chiaverini reiterated an Underperform rating with a $4 forecast, while Mizuho analyst Dan Dolev maintained a Buy rating with a $12 forecast.
April 30, 2024 | 7:03 pm
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SoFi Technologies exceeded Q1 2024 revenue and EPS expectations but faces concerns over weakening credit quality and achieving tech revenue growth, impacting its stock price negatively.
Despite surpassing Q1 2024 expectations, SoFi's stock declined due to concerns over credit quality and the challenge of meeting tech revenue growth guidance. Analysts' diverging views on the stock's future, with Wedbush rating it Underperform and Mizuho maintaining a Buy rating, reflect uncertainty and potential volatility in its short-term price movement.
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IMPORTANCE 90
RELEVANCE 100