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SoFi Technologies is a top pick in the beleaguered fintech space, BTIG says. Analyst Lance Jessurun initiated the stock with a buy rating, calling it a “long-term winner in the neobank space.” “We are at a pivotal point for Fintech stocks, and believe the run-up in valuations over the last two months will see some divergence as the macro environment evolves,” Jessurun wrote to clients on Tuesday. “In this environment, we prefer names tied to recurring IT spend, and are cautious on names tied to consumer discretionary spend.” SOFI 1D mountain SoFi Technologies shares 1-day SoFi shares have more than doubled this year, but the analyst’s $14 price target suggests even further upside — more than 46% upside from Tuesday’s close of $9.54 per share, in fact. The stock is up 1.5% in the Wednesday premarket. As a whole, the fintech backdrop remains stressed, but the analyst pointed out that SoFi management is boosting confidence in its business, and that a resumption of federal student loan debt repayments should support the platform. “Given numerous tailwinds, GAAP profitability, and policy changes, we see significant upside to shares, and note that SOFI is our favorite long-term choice in the consumer-facing fintech space,” Jessurun said. —CNBC’s Michael Bloom contributed to this report.
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