What happened
Shares of next-generation financial services company SoFi Technologies (SOFI -0.26%) resolutely obeyed gravity on Thursday, falling at a nearly 5% clip. A pair of fresh analyst takes on the company didn't inspire much confidence among investors.
So what
Autonomous Research initiated coverage on SoFi stock that morning, however this didn't do much to change investor sentiment. The recommendation was only market perform (i.e., hold) at a price target of $6 per share. Considering that's less than $1 above the current share price, the new coverage isn't likely to get anyone excited about the stock.
The Autonomous Research news comes a day after a more discouraging piece of news on the analysis front. Piper Sandler (NYSE: PIPR) prognosticator Kevin Barker cut his price target on SoFi to $8 per share from the previous $10.
As with many pundits and investors, Barker is concerned about a looming economic slowdown, specifically the growing potential for a recession in the next year to 18 months. Such a dynamic tends to impact banks and financial services providers more immediately than companies in other industries, as they are the entities financing significant chunks of both consumer and business spending.
Now what
I should note that not every analyst is bearish on SoFi's prospects.
One of the more positive is Mizuho's Dan Dolev, a relatively high-profile tracker of tech and fintech titles. In mid-June Dolev reiterated his buy recommendation on SoFi stock at a $9 per-share price target, saying that company management struck a "very constructive tone" on the subject of client demand for loans.
The analyst is also heartened by SoFi's customer base which, considering it averages $165,000 in annual income and has a strong collective FICO score of 746, should help the company weather the effects of any economic slump.
