Oppenheimer analysts downgraded shares of SoFi Technologies (NASDAQ:SOFI) to Perform, removing the price target in a note to clients on Thursday.

The analysts told investors they see “significant capital capacity” but believe the company’s valuation reflects Oppenheimer’s raised outlook, although their long-term bullish thesis is unchanged.

“NT the ~105% stock price appreciation YTD vs. the S&P’s ~14%, now largely reflects our raised 2024 revenue outlook (in this note) and the credit we think the SOFI management team is due given execution and diversified business,” they wrote.

“Given SOFI’s net originations (originations minus paydowns), SOFI in a normalized student loan environment likely can support balance sheet growth for ~5.7 quarters (ex warehouse) and surpass consensus 2024PE loans ~$7.5B if no sales were executed,” they added.

The analysts reiterated that the firm is a “strong supporter of SOFI’s strategy,” however, due to the stock trading at the top end of its high range, Oppenheimer is moving to the sidelines as “investor sentiment could shift on credit/other existing narratives, creating a better entry point.”