By Dhirendra Tripathi
Investing.com – SoFi Technologies (NASDAQ:) rose more than 2% in Wednesday’s premarket trading after getting a $30 target from Rosenblatt, an increase of 44% from the stock’s previous closing price.
According to analyst Sean Horgan, challengers like Sofi possess a powerful cost advantage over legacy banks and will be ones driving “dramatic disintermediation” over 5-10 years.
This would leave substantial primary bank accounts, revenues and market value up for grabs and SoFi is well positioned to capture a significant amount of the value hanging in the balance, Horgan wrote in his note.
SoFi, an online banking and finance company, began to be traded on June 1 after its merger with blank-check company Social Capital Hedosophia Holdings V.
It offers home and auto loans, stock and cryptocurrency trading and wealth management services.