SoFi Technologies, Inc. (NASDAQ:SOFI) are roughly flat Tuesday. Stephens & Co. analyst Vincent Caintic initiated coverage on the stock with an Equal-Weight rating price target of $7.
Caintic said while he is bullish on growth but expressed concern over the company’s high expense ratio, with marketing expenses around 36% of revenues versus an industry average of around 8.5%.
While the analyst was skeptical of whether growth will slow in the company’s push to profitability, he also thinks SoFi can hold its high loan growth rate through 2025.
The company is set to report second quarter earnings in six days on July 31.
SoFi is expected to lose six cents per share and report revenue of $478.78 million.
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SOFI Price Action: Shares of SOFI were down 1.27% at $9.33 at the time of publication, according to Benzinga Pro.
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