Needham starts SoFi Technologies at Buy given its full banking license

As previously reported, Needham analyst Kyle Peterson initiated coverage of SoFi Technologies with a Buy rating and $10 price target. The company is seen as a a long-term winner in the digital lending/neobank space, largely due to its focus on prime and super-prime consumers and possession of a full banking license, which provides it superior unit economics compared to other consumer finance platforms that focus on lower income borrowers and/or lack a banking license, the analyst tells investors in a research note.