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Sell Recommendation on SoFi Technologies Due to Overvaluation Despite Growth Prospects

Sell Recommendation on SoFi Technologies Due to Overvaluation Despite Growth Prospects

Analyst Tim Switzer of KBW maintained a Sell rating on SoFi Technologies, boosting the price target to $13.00.

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Tim Switzer has given his Sell rating due to a combination of factors including the impressive rebound of SoFi Technologies’ stock over the past three months, which has been driven by new revenue opportunities such as the crypto trading platform and expanded student lending. Despite these positive catalysts, Switzer’s analysis suggests that the stock has surpassed its fundamental value. His updated valuation model, which includes a sum-of-the-parts analysis, indicates a fair value closer to a $13 price target.
While the company’s growth prospects and value proposition are strong, Switzer’s estimates remain below consensus and guidance for 2026. This suggests that the current stock price may not be sustainable in the long term, leading to the Sell recommendation. The stock’s recent performance, although promising, does not align with the underlying fundamentals as per Switzer’s assessment.

Switzer covers the Financial sector, focusing on stocks such as ConnectOne Bancorp, Bancorp, and SoFi Technologies. According to TipRanks, Switzer has an average return of 8.7% and a 75.00% success rate on recommended stocks.

In another report released on June 24, Bank of America Securities also maintained a Sell rating on the stock with a $13.00 price target.

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