Zinger Key Points
  • SoFi’s direct deposit strategy appears to be resonating with customers as growth was up 135% q/q, one analyst says.
  • 'It was nice to see a strong beat & raise' by SoFi, another analyst noted.

SoFi Technologies Inc. SOFI reported second-quarter (Q2) revenue of more than $356 million. That's up 50.1% year-over-year, beating analyst projections by $11.62 million.

BofA Securities on SoFi Technologies

Analyst Mihir Bhatia reiterated a Neutral rating and price target of $8.

SoFi reported adjusted revenues and EBITDA higher than the consensus estimates, Bhatia said in a note.

“Lending segment results were particularly strong in 2Q, while the Financial Services segment came in below our forecast. Technology Segment was broadly in-line…SoFi’s direct deposit strategy also appears to be resonating with customers as deposit growth was up 135% q/q,” the analyst mentioned.

“Of note however, SoFi only modestly increased FY22 guidance and it is back-end loaded to 4Q,” he added.

Check out other analyst stock ratings.

Mizuho Securities on SoFi Technologies

Analyst Dan Dolev maintained a Buy rating, while raising the price target from $7 to $8.

“Following some anticipation so far this year, it was nice to see a strong beat & raise by SOFI with strength across the board & a nice increase to the FY guide,” Dolev wrote in a note.

“Key highlights include yet again over 20% Q/Q Personal Loan growth, higher average FICO score, muted delinquencies and a Q/Q acceleration in both products and member numbers,” he added.

Credit Suisse on SoFi Technologies

Analyst Timothy Chiodo reiterated a Neutral rating while raising the price target from $8 to $8.50.

“The company’s Lending segment drove the majority of the Q2 beat vs. our forecast, alongside a modest beat from the Financial Services segment and ~in-line results from Galileo,” Chiodo said.

The guidance for the back half of the year suggests “improving utilization and margins in the bank asset, continued healthy gain on sales margins, further product penetration in Financial Services, and continued growth in contributions from the Technology Platform segment,” he added.

SOFI Price Action: Shares of SoFi Technologies had jumped 22.31% to $7.84 at the time of publication Wednesday.

Photo: Wirestock Creators via Shutterstock

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Posted In: Analyst ColorNewsPrice TargetReiterationAnalyst RatingsMoversTrading IdeasBofA SecuritiesCredit SuisseDan DolevMihir BhatiaMizuho SecuritiesTimothy Chiodo