SoFi stock has ‘pure upside’ from here: Dan Dolev
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.
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.