Update shared on26 Sep 2025
Fair value Increased 1.32%Analysts have modestly raised SoFi’s price target to $21.28, citing anticipated interest rate cuts, improved digital lending trends, and upcoming product launches—though some caution remains on valuation relative to fundamentals.
Analyst Commentary
- Bullish analysts are increasing price targets due to anticipated interest rate cuts, which are expected to benefit bank processors, lenders, and exchanges, notably improving SoFi's forward outlook and justifying higher valuation multiples.
- Positive trends in digital lending funding tracker data are leading analysts to expect stronger growth in SoFi's lending business as funding availability and costs improve, especially if rate cuts materialize.
- Analysts see recent capital raises as a positive step for SoFi, enhancing financial flexibility, though some maintain more cautious views regarding valuation despite the raise.
- Strong catalysts such as the launch of a crypto trading platform and expanded student lending opportunities—tied to new legislation—are seen as potential sources for incremental revenue growth, prompting upward adjustments in price targets.
- Despite acknowledging SoFi's leading position as a neo-bank with a diverse product suite and robust growth prospects, some bearish analysts view shares as fairly valued or overextended relative to underlying fundamentals, maintaining cautious or underperform ratings.
What's in the News
- Entered a multi-year partnership with NFL MVP and Buffalo Bills quarterback Josh Allen to promote SoFi Plus, leveraging major media platforms for marketing.
- Completed and filed a $1.5 billion follow-on equity offering of common stock at $20.85 per share; Citigroup and Mizuho added as co-lead underwriters.
- Raised full-year 2025 guidance, now expecting GAAP net income of ~$370 million and EPS of ~$0.31, above prior guidance, with projected 30% member growth.
- Formed a partnership with Paychex to offer SoFi at Work solutions via Paychex Flex Perks, expanding access to financial wellness products for employees.
- Expanded SoFi Invest alternative investments platform to include new private markets funds (Cashmere, Fundrise, Liberty Street Advisors) and launched access to curated alternative asset portfolios, including collaborations with leading asset managers.
Valuation Changes
Summary of Valuation Changes for SoFi Technologies
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $21.00 to $21.28.
- The Future P/E for SoFi Technologies remained effectively unchanged, moving only marginally from 40.76x to 41.21x.
- The Consensus Revenue Growth forecasts for SoFi Technologies remained effectively unchanged, moving only marginally from 19.3% per annum to 19.2% per annum.
Disclaimer
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