SoFi Technologies Inc. (SOFI) shares plunged 7.02% in pre-market trading on Friday, following a new analyst coverage that may have dampened investor enthusiasm. The significant drop comes as Redburn Atlantic initiated coverage on the fintech company with a Hold rating.

Analyst Harry Bartlett from Redburn Atlantic set a price target of $20.50 for SoFi stock. While the specific reasons for the Hold rating were not detailed in the available information, such ratings often indicate that analysts expect the stock to perform in line with the sector average over the next 12 months. The conservative stance taken by Redburn Atlantic appears to have triggered a selloff among investors who may have been anticipating a more bullish outlook.

The sharp pre-market decline suggests that SoFi's current trading price might be significantly above the newly issued price target, leading to a rapid adjustment in market expectations. Investors will likely be closely watching for any additional analyst comments or company news that could provide more context to this sudden downturn in SoFi's stock price.