Sell Rating on SoFi Technologies Due to Overvaluation and Competitive Challenges

SoFi Technologies (SOFI – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Mihir Bhatia from Bank of America Securities reiterated a Sell rating on the stock and has a $13.00 price target.

Mihir Bhatia has given his Sell rating due to a combination of factors related to SoFi Technologies’ current valuation and market position. Despite the company’s strong growth in its Financial Services segment, the stock is trading at a high valuation multiple compared to its peers in the consumer finance and banking sectors. This premium valuation, at 20 times the mid-point of 2026 EPS guidance, suggests that the stock price may not have much room to grow further.
Bhatia also notes that while SoFi’s execution in expanding its financial services and loan platform has been commendable, the current stock price of $13.67 exceeds the price objective of $13.00. This overvaluation, coupled with the competitive landscape and the need for continued robust growth to justify the high valuation, underpins the Sell rating. The recommendation reflects concerns that the stock’s current price does not adequately account for potential risks and challenges in maintaining its growth trajectory.