Bank of America Upgrades SoFi Stock to "Buy"

The end of the student loan moratorium could give the consumer lending stock a boost

Digital Content Manager
Sep 14, 2022 at 9:09 AM
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The shares of SoFi Technologies Inc (NASDAQ:SOFI) are up 3.6% at $6.05 before the opening bell, following an upgrade from Bank of America to "buy" from "neutral." Bank of America also lifted its price target by $1 to $9, citing the end of the student loan moratorium, as well as the company's "NFL-aligned marketing investments," the latter of which the analysts expects will spark user growth and customer engagement. 

SOFI has suffered a dramatic selloff this year, with pressure at the 50-day moving average keeping a tight lid on any breakout attempts. Though the stock did manage to break through this trendline early last month thanks to an impressive post earnings pop, the shares quickly sunk back below this level by the end of August. Year-to-date, SOFI has lost 63%. 

Should other covering members of the brokerage bunch start to follow Bank of America's lead, it could give SOFI a much-needed boost. Of the 12 in coverage, five considered the stock a "hold" coming into today. Meanwhile, short sellers are already hitting the exits, down 20.9% in the last two reporting periods. However, the 103.23 million shares sold short make up a hefty 14.1% of the stock's available float, leaving plenty of room for a short squeeze. 

 

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