Update shared on27 Aug 2025
Fair value Increased 3.31%Analysts have raised SoFi Technologies' price target to $20.78, citing optimism about new revenue streams from product diversification, improved sector trends, and a stronger balance sheet, though some caution that the stock may be fairly valued following its recent rally.
Analyst Commentary
- Product diversification, particularly expanding into a crypto trading platform and student lending following new legislation, is seen as a key growth driver and revenue catalyst.
- Bullish analysts now expect near-term revenue upticks from new business lines, with upside scenarios potentially boosting revenue by 3-5%.
- Bullish analysts highlight favorable sector trends for FinTech and expectations of solid earnings performance after previous underperformance versus peers.
- Positive sentiment around SoFi’s capital raise, which is viewed as strengthening its balance sheet and supporting long-term growth.
- Bearish analysts maintain concerns that shares have outpaced fundamental value despite promising prospects, suggesting the stock is fairly valued or has limited upside at current levels.
What's in the News
- SoFi completed a $1.5 billion follow-on equity offering of common stock at $20.85 per share, with Citigroup and Mizuho added as co-lead underwriters.
- The company raised 2025 full-year GAAP net income guidance to $370 million and GAAP EPS to $0.31, expecting approximately 30% member growth and tangible book value growth of $640 million.
- SoFi expanded its alternative investments platform, adding new private market funds from Cashmere, Fundrise, and Liberty Street Advisors, as well as collaborating with BlackRock and Templum for curated portfolios including alternative assets.
- SoFi enhanced its digital financial services with crypto-powered capabilities, including forthcoming self-serve international money transfers using blockchain technology and stablecoins.
- New partnerships with Paychex and Benzinga broaden SoFi’s distribution of financial wellness tools and market insights to employees of Paychex clients and SoFi Invest members.
Valuation Changes
Summary of Valuation Changes for SoFi Technologies
- The Consensus Analyst Price Target has risen slightly from $20.11 to $20.78.
- The Future P/E for SoFi Technologies has risen slightly from 39.05x to 40.34x.
- The Consensus Revenue Growth forecasts for SoFi Technologies remained effectively unchanged, moving only marginally from 19.1% per annum to 19.3% per annum.
Disclaimer
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