William Blair analyst Andrew Jeffrey has maintained their bullish stance on SOFI stock, giving a Buy rating on April 25.
Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight SoFi Technologies’ strong market position and financial performance. The company is effectively capturing market share from traditional financial institutions by investing in a broad range of financial services, including spending, savings, lending, advisory, investing, and embedded finance. This strategic investment has resulted in a significant increase in financial product monetization, as evidenced by a 48% year-over-year growth in segment ARPU.
Furthermore, SoFi’s valuation is considered attractive, with the potential for future growth as the company operates with a more asset-light and predictable model. The company is making strides towards becoming a top-10 financial institution, supported by a robust 34% member growth in the first quarter. Additionally, SoFi’s earnings quality is improving, with a greater portion of revenue now coming from tech and financial services. The loan platform business, in particular, is expected to be a major driver of future growth, with first-quarter fees showing a substantial increase. These factors collectively support the Buy rating given by Andrew Jeffrey.
According to TipRanks, Jeffrey is a top 100 analyst with an average return of 13.9% and a 64.53% success rate. Jeffrey covers the Technology sector, focusing on stocks such as Affirm Holdings, Fiserv, and WEX.
In another report released on April 25, JMP Securities also initiated coverage with a Buy rating on the stock with a $17.00 price target.