SoFi Technologies (NASDAQ:SOFI) stock traded higher at the time of writing after Mizuho analyst Dan Dolev assured that the financial service company’s lending business isn’t in trouble. Dolev stated that the company’s balance sheet shows that it has “ample capacity to originate personal & student loans for 5-6 quarters, even without selling loans.” He added that the company can even continue running for seven quarters if it sells about 10% of its Q2 annual run-rate originations.
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Furthermore, the analyst pointed to the company’s expectations of positive GAAP net income by the end of the year. In addition, according to Dolev, for every $100M of GAAP net income, SoFI could add $750M -$800M of incremental lending capacity.
Meanwhile, the company today expanded its operations into Latin America through Galileo Financial Technologies. Per details of the announcement, the firm has received Mastercard certification to operate in five countries in Latin America. This recent move helps SoFi’s business expand from simply being a student loan company.
What is a Fair Price For SoFi Stock?
Turning to Wall Street, analysts have a Hold consensus rating on SOFI stock based on five Buys, six Holds, and four Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average SOFI price target of $9.73 per share implies a 13.60% upside potential.
