The Mizuho analyst has a price objective of $6.0 on SoFi stock.
Shares of the fintech firm are down over 70% for the year.
SoFi Technologies Inc (NASDAQ: SOFI) is one of the hardest hit stocks in the fintech space this year but that sell-off has only created a great opportunity to buy, says Dan Dolev. He’s a Senior Analyst at Mizuho.
Dolev’s bull case for the Sofi stock
Part of the underperformance is related to the “crypto winter” that got worse after the recent collapse of FTX.
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On top of that, President Biden last week announced an extension on the repayment of student loans until the third quarter of 2023. Still, Dolev said on CNBC’s “TechCheck”:
I guess we had that setback with the Biden extension of the moratorium but you’re seeing the stock barely move to that because I think it’s kind of immune to that. So, from here, there’s only pure upside.
For the year, SoFi stock is currently down more than 70%.
SoFi’s fundamentals remain strong
Earlier in November, SoFi Technologies reported market-beating results for its third financial quarter as higher rates offered a boost to its net interest income. According to Dan Dolev:
All the bad news is already prices in, they’re doing well fundamentally. It’s a bank with a cachet and you don’t really have any other equivalent to that here in the U.S.
The Mizuho analyst recommends buying SoFi stock and sees upside in it to $6.0 a share. That represents a 30% return for investors that hop on to it here.
Another one he’s bullish on in fintech stocks is Affirm Holdings Inc.
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