Analyst Kyle Peterson of Needham reiterated a Buy rating on SoFi Technologies (SOFI – Research Report), with a price target of $20.00.
Kyle Peterson has given his Buy rating due to a combination of factors including SoFi Technologies’ strong start to the fiscal year 2025. The company exceeded expectations in both revenue and earnings, primarily driven by robust performance in its lending business. Despite a slower start in tech product and solutions revenue, the promising pipeline of new deals, such as those with the US Treasury Direct and Wyndham Hotels, is expected to boost growth as the year progresses and into the next fiscal year.
Peterson acknowledges potential short-term volatility due to macroeconomic uncertainties but believes that the company’s estimates are likely to trend upward. The focus on prime and super-prime consumers is seen as a strategic advantage in the current credit cycle. Consequently, Peterson continues to recommend SoFi Technologies’ stock for investors seeking exposure to digital lending, reiterating a Buy rating with a price target of $20.