Analysts Target SoFi Technologies on Slashed Full-Year Outlook

SOFI has already lost 44% in 2022

Digital Content Manager
Apr 7, 2022 at 9:32 AM
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SoFi Technologies Inc (NASDAQ:SOFI) yesterday evening said it was slashing its full-year outlook, following a recent decision from the Biden administration to extend the federal student loan payment moratorium until August 31, 2022 from May 1, 2022. The company lowered its adjusted net revenue to $1.47 billion and its adjusted EBITDA to $100 million. In response, the stock is down 4.1% at $8.39 ahead of the open.

Analysts are pelting the stock with price target cuts in the wake of the decision. So far, no less than four brokerages have slashed their price target. The widest comes from Oppenheimer, to $13 from $18. Mizuho, which cut its price target to $14, added that with three of SoFi Technologies' board members resigning, the company's recent move looks more like an optics issue than indicative of a problem. 

Coming into today, analysts were mostly bullish on SOFI, which could spark a further unwinding of optimism down the line. Of the 11 in coverage, seven rated the equity "strong buy," while four said "hold." What's more, the 12-month consensus price target of $14.71 is a whopping 68.3% premium to last night's close. 

Short sellers, meanwhile, have targeted the stock at a quickened clip, rising 26.8% in the last reporting period. These bears are firmly in control, with short interest making up 21.3% of the stock's available float. 

SOFI has already shed 44% in 2022, and today's drop brings the stock even closer to last month record low of $7.73, touched on March 14. Overall, it's been a dismal past few months for SOFI, after its rally ran out of steam near the $24 level in mid-November, with multiple trendlines guiding the shares even lower -- most notably the 50-day moving average. The security just came off its fifth-straight monthly drop, and is pacing for a more than 6% loss for the week. 

 

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