SoFi sinks after BofA resumes at Underperform post capital raise

Shares of SoFi Technologies (SOFI) are moving lower after BofA analyst Mihir Bhatia resumed coverage of the stock with an Underperform rating and $20.50 price target SoFi in midday trading is down 10%, or $2.81, to $26.47. The $1.5B capital raise in December is a “modest positive” as it provides “ammunition” to invest in continue growth, the analyst told investors in a research note. However, BofA believes the company’s capital raises have led to more questions about the potential for acquisitions. Any deal is “likely to be smaller and more complementary than game changing,” BofA contends. It sees limited share upside at the current SoFi’s current valuation levels.