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SoFi Technologies (NASDAQ:SOFI) stock is in the news Wednesday after analysts at Keefe, Bruyette & Woods cut their price target for the financial services company’s shares.

The KBW analysts decreased their price target for SOFI stock from $7.50 per share to $7.00 per share. That still represents a potential 10.2% upside from the stock’s prior closing price. However, it is below the analysts’ consensus price prediction of $9.29 each.

That price target drop comes with KBW maintaining its “market perform” rating for SOFI stock. Investors will note that the analysts’ consensus rating for SoFi shares is hold based on 17 opinions.

What’s Behind the Lower SOFI Stock Prediction?

Here’s what the KBW analysts had to say about SOFI in a note to clients obtained by StreetInsider.

“We do not believe all investors are expecting the magnitude of the NCO acceleration that we project, and the messaging may be difficult for management to communicate how quarterly NCOs can be in the 6.30-7.10% range in 2Q24 (and still rising) while the expected cumulative losses over the life of the loans are still just 7-8%.”

SOFI stock is up 1% as of Wednesday afternoon. However, the company’s shares are down 33.3% since the start of the year.

There are plenty more stock market stories traders are going to want to read about below!

We have all of the hottest stock market happenings investors need to know about on Wednesday! Among that is what’s going on with shares of Hawaiian Electric (NYSE:HE) stock, Plug Power (NASDAQ:PLUG) stock and Kazia Therapeutics (NASDAQ:KZIA) stock today. All of this info is ready at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2024/07/kbw-just-cut-its-price-target-on-sofi-sofi-stock/.

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