On Monday, SoFi Technologies Inc. (NASDAQ:SOFI) shares surged 12% to trade above $18.00 per share after Morgan Stanley analysts initiated coverage with an overweight rating. The analysts cited the company’s exciting revenue growth story, setting their price target at $25.00 per share.
Analyst Betsy Graseck said the company has a powerful revenue growth story as it ramps up a share of the financial services wallet.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
In a note to investors, the analyst wrote:
“Competition is rising among challenger FinTechs for Gen Y & Z, but SOFI has a leg up given its roots in the hardest part of consumer finance, lending, along with a robust digital offering,”
The stock is now up 48% this year and more than 73% over the last 12 months. SoFi Technologies recently announced a convertible debt offering stretching its convertible notes to $1.1 billion.
Should you bet on SOFI’s growth?
Although SoFi Technologies shares trade at a steep price-sales ratio of about 16.31, this valuation multiple could improve significantly in the coming quarters based on Morgan Stanley’s hyped revenue growth story.
Moreover, at the current price of $18.13, the stock still trades below the consensus Street price target of about $23.83. Therefore, the stock has an upside potential of about 31%, making it an exciting buy for investors willing to bet on its growth story.
Is a pullback close?
Technically, SoFi Technologies shares appear to be trading within a sideways channel formation in the intraday chart. The stock has recently bounced back to rally above the 100-day moving average.
As a result, the stock has now moved closer to the overbought conditions of the 14-day RSI. Therefore, a pullback could be on the horizon.
Investors could target short-term pullbacks at about $16.65, or lower at $14.85, while $19.48 and $20.85 are crucial resistance zones.
Is it too late to buy?
In summary, although SOFI shares are up 48% this year, the stock is still down nearly 24% from its June high, and close to 30% off its year-to-date highs.
Therefore, given its exciting revenue growth and the share price compared to the consensus Street price target, it may not be too late to buy the stock.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- T20 World Cup: Top 5 India performances | Cricket News – Times of India
- Ishaan visits Ananya’s home with flowers; trolls say it’s to ensure she doesn’t name him in drugs case
- uzbekistan: Uzbek president heading toward landslide win in elections – Times of India
- China passes new land border law amid military standoff with India – Times of India
- Masters champion Matsuyama wins by 5 shots in Japan
- cpec: US sabotaging China-Pakistan Economic Corridor: Pakistan PM’s aide – Times of India