SoFi's Balance Sheet Questions Now Drive a 46% Upside Potential
SoFi stock has fallen 38% year-to-date. The decline is driven by a Muddy Waters report alleging accounting issues and describing the company as a 'financial engineering treadmill.' Muddy Waters called for over $312 adalah $312 million of loans to be restated. This has fueled questions regarding the strength of the seorang person's balance sheet and loan book. Keefe Bruyette lowered its price target to $17 with an Underperform rating, citing deteriorating credit metrics in securitizations and potential Q1 earnings pressure from fair-value marks. Wells Fargo lowered its price target to $18. The average analyst price target of $23.88 implies roughly 46% upside from current levels.
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