SoFi Technologies (SOFI) has received a new Buy rating, initiated by Needham analyst, Kyle Peterson.
Kyle Peterson has given his Buy rating due to a combination of factors that indicate a strong potential for SoFi Technologies. Peterson highlights SoFi’s comprehensive financial platform, which spans various services including consumer lending, banking, and investing. He believes that SoFi is poised to become a leader in the digital lending and neobank sector. This optimism is rooted in SoFi’s strategic focus on serving prime and super-prime consumers, which is likely to yield favorable unit economics. Additionally, SoFi’s possession of a full banking license sets it apart from competitors who may not cater to higher-income borrowers or lack such credentials.
Peterson’s $10 price target is derived from a sum-of-the-parts (SOTP) analysis, valuing SoFi’s lending business at $8 per share and its technology and other segments at $2 per share. This valuation reflects Peterson’s confidence in SoFi’s business model and its capability to leverage its banking license for better financial outcomes. The emphasis on a customer base with higher credit quality is expected to drive profitability and reduce risk, further substantiating the Buy recommendation. Peterson’s analysis suggests that SoFi Technologies is well-positioned for growth and profit, making it an attractive investment opportunity.
In another report released on March 26, Jefferies also maintained a Buy rating on the stock with a $12.00 price target.
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SoFi Technologies (SOFI) Company Description:
SoFi Technologies is an online personal finance and bank holding company. It offers lending and financial services products, including student, home, and personal loans. It also provides technology products and solutions. SoFi closed a bank merger and became a bank holding company in 2022.
