SoFi Technologies stock is trading around $17.65, down 3.55% recently, but two analyst calls are putting a spotlight on the fintech’s upside potential.
Citi’s Peter Christiansen is the most bullish voice on Wall Street when it comes to SOFI. He has a $30 price target on the stock, which works out to roughly 70% upside from current levels.
Christiansen says SoFi’s Q2 results showed a clear shift toward more durable growth. The company beat estimates on revenue, EBITDA, and credit quality when it reported on July 29.
Member growth and product adoption were standout metrics. Cross-buy hit 51% and products per member rose to an all-time high of 1.54. Credit trends improved across all loan types.
The analyst described SoFi as entering a “durable operating leverage cycle,” where record originations, stronger margins, and better credit quality are all moving in the same direction.
Adjusted revenue for the quarter came in at $1.2 billion, up 40% year over year. Originations hit a record $14.8 billion. Delinquencies and charge-offs both improved.
Christiansen lifted his 2027 revenue estimate by around 10%, expecting net interest margin to come in stronger than he previously modeled.
His $30 target is based on a 30 to 35 times GAAP P/E multiple, supported by expected 35% three-year EBITDA growth. New products including loan platform sales, crypto, money transfer tools, Cash Coach, and private company fund access are expected to add more operating leverage over time.
Net income margins are expanding from 12% to 17% this year, though return on tangible equity is still well below SoFi’s long-term target of 20% to 30%.
Piper Sandler also moved on SOFI, initiating coverage at Overweight with a $22 price target. That sent the stock up 2.13% in premarket trading.
The $22 target is roughly 25 times SoFi’s 2027 earnings estimate. Piper Sandler’s case rests on a high banking and multi-product attach rate among a higher-income customer base.
The broker noted that products grew 43% year over year in Q2, ahead of member growth of 35%. That gap suggests existing members are buying additional products beyond the lending product that first brought them to SoFi.
Lending still makes up 52% of revenue. Financial Services accounts for 39% and Technology around 9%.
Piper Sandler models 22% revenue CAGR and 27% adjusted EBITDA CAGR through 2028. It forecasts revenue of $4.89 billion this year and $6.14 billion next, with EPS of $0.63 and $0.88 respectively.
SoFi’s total capital ratio stood at 18.8% at the company level and 15.3% at the bank, well above the 10.5% regulatory minimum.
Piper Sandler flagged the Technology segment as a swing factor, noting that growth could reaccelerate after Chime departed the Galileo platform.
The overall Wall Street consensus sits at Hold, based on six Buys, six Holds, and three Sells over the last three months. The average price target is $20.23, implying about 14.6% upside.
The post SoFi Stock: Why Two Analysts See 70% Upside Potential appeared first on CoinCentral.
