Kevin Barker, a Piper Sandler analyst, upgraded SoFi Technologies to Overweight (NASDAQ:), with a $10.00 price target (down from $12.00).

An analyst points out that SOFI stock has seen a dramatic selloff over the past six months. This was due to a prolonged student loan moratorium extension, rising rates and a sharp selloff among growth stocks.

“We acknowledge there will be some headwinds due to rising rates, but the market is over-discounting SOFI with the company poised to show a significant ramp in EBITDA in 2H22 and into 2023. The combination of rapid growth in deposits, the expiration of the student loan moratorium, and revenue growth in the financial services segment should lead to significant earnings momentum throughout 2023 and 2024,” Barker said in a client note.

Barker anticipates that SOFI will receive between $20 and $30 million more in EBITDA per quarter after the moratorium ends.

Analysts also believe that SoFi will begin to appreciate in the second half this year. This should lead to a higher multiple for the stock.

Pre-market Monday saw SOFI’s stock prices rise by almost 7.5%

By Senad Karaahmetovic