Deutsche Bank lowers SoFi Technologies share price target due to market volatility

On Tuesday, Deutsche Bank revised its price target on SoFi Technologies (NASDAQ: ) stock to $11.00 from $12.00 previously. The company maintained its hold rating on the stock.

The correction comes as analysts acknowledge that the stock's fundamentals are undervalued but also note the current volatility and negative sentiment surrounding the stock.

Analysts at the bank noted that forecasting the stock's short-term performance is challenging due to its volatility. The market's current view of the company does not appear to support a significant increase in the share price. The analyst stressed that it would be difficult to find catalysts that would keep the stock in line with the 18.5x price-to-earnings ratio indicated by comparable companies.

While recognizing the potential value in SoFi Technologies stock, the analyst expressed caution. Current market conditions, including the stock's volatility and overall sentiment, are cited as reasons to maintain a Hold rating. Analysts believe that SoFi Technologies' current risk-reward profile is relatively balanced.

All in all, while Deutsche Bank believes SoFi Technologies is undervalued, the firm recommends a cautious approach due to the lack of near-term catalysts and continued market volatility. The bank maintained its Hold rating as it awaits clearer signs of a positive shift in the stock's valuation.

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