SOFI - SoFi: Don't Worry About Loan Defaults (Rating Upgrade)
2024-06-25 16:07:12 ET
Summary
- SoFi shares have slumped significantly since 2021 peak, but recent financial improvements suggest a potential turnaround.
- Despite market concerns over loan defaults, SoFi's strong financial performance and high-quality borrower base indicate upside potential.
- Insider buying, promising forward growth projections, and undervaluation relative to growth prospects support my strong buy rating on SoFi.
Investment Thesis
SoFi Technologies ( SOFI ) shares have experienced a significant slump since their peak in 2021 of $28.26. Fast-forward to today, shares have declined nearly 78% to $6.54. SoFi has been experiencing slower revenue growth, and earlier some operational losses, which I think are the main drivers for this drop. However, I think there's potential for a turn around due to recent developments. I am now more bullish on them than I was when I last wrote on them last fall.
In the last two consecutive quarters, SoFi has shown improvement in their financials, achieving GAAP profitability as promised by management last fall. Promises made, promises kept....
SoFi: Don't Worry About Loan Defaults (Rating Upgrade)