Benzinga | Oct 11, 2021 10:11AM EDT

Why SoFi Shares Are Trading Higher Today

SoFi Technologies Inc (NASDAQ:SOFI) shares are trading higher after Morgan Stanley initiated coverage on the stock with an Overweight rating, stating that two catalysts could help move the stock higher.

Morgan Stanley analyst Betsy Graseck gave SoFi's stock a price target of $25.00, which is higher than the average Wall Street price target of $23.83.

Graseck noted "Initiating on SoFi, a powerful revenue growth story as it ramps share of the consumer financial services wallet."

"Competition is rising among challenger FinTechs for Gen Y & Z, but SOFI has a leg up given its roots in the hardest part of consumer finance, lending, along with a robust digital offering," she added.

SoFi's technology platform allows customers to have an all-in-one app and website to trade, invest, apply for loans and more.

The stock traded up nearly 7% Monday morning, around $17.25 a share.