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SoFi Is 'Slightly Overvalued' At $24, Says Analyst: Sees Fair Value Closer To $20 Ahead Of Company's Q4 Results
['Vishaal Sanjay']
Benzinga - Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals
Ahead of SoFi Technologies Inc.’s (NASDAQ:SOFI) fourth-quarter results, analyst Parkev Tatevosian, CFA, is urging caution regarding the stock, especially at its current levels.
SoFi Is ‘Slightly Overvalued’Tatevosian, who said he had been “bullish on SoFi stock for a long time,” now views the company as “slightly overvalued” and not an attractive buy ahead of earnings, citing elevated volatility and limited upside relative to risk.
According to his proprietary models, “SoFi stock is worth about $20 a share, $19.60 to be precise,” he said.
At current levels, the stock is “not extremely overvalued,” but still "slightly overvalued when accounting for a margin of safety.”Still, he said buying ahead of earnings is not attractive.
“I would not be interested in buying SoFi stock before earnings,” he said, noting that fourth-quarter reports typically bring added volatility due to forward guidance.