Loop Capital initiated coverage on SoFi Technologies (SOFI) with a "Hold" rating. The firm set a $22 price target. This target suggested a potential upside of about 22%. SoFi shares fell following the announcement.
Analyst Reginald Smith acknowledged SoFi as a leading digital bank, citing its strong client acquisition model. However, the neutral rating stems from concerns over near-term risks. These risks include potential interest rate hikes and SoFi's shift toward a more asset-intensive lending model. SoFi shares dropped over 3% during the trading session.