SoFi Loan Boom Impresses But Bank Of America Sticks To 'Underperform'

Bank of America Securities analyst Mihir Bhatia reiterated the Underperform rating on SoFi Technologies, Inc. SOFI on Friday, with a price forecast of $13.

At the 45th Annual William Blair Growth Stock Conference on Wednesday, SoFi CFO Chris Lapointe showcased the company's expanding reach. It now boasts approximately 11 million members and over 15 million products.

The analyst notes that SoFi’s Financial Services products—Money, Relay, and Invest—are broad-entry tools that attract users to its platform.

Also Read: SoFi Could Become ‘American Express Of Fintech’: Analyst

Once users are in the system, the company leverages its Financial Services Productivity Loop to cross-sell offerings, including those in the Lending segment.

Bhatia also highlights the Loan Platform as a major growth driver over the past year.

SoFi originates loans in a capital-light way and earns strong income from the product.

In the first quarter FY25, the company originated $1.6 billion in third-party loans and expects continued growth, especially if credit standards ease. With 84% year-over-year growth in the quarter, the product is gaining momentum and is poised to become a key revenue contributor.

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The analyst points out that SoFi sees its Invest product as a major driver of Financial Services growth in 2025.

Management views it as potentially the next standout offering—comparable to Money, which SoFi considers its benchmark product.

The company has already added features like a robo-advisor and funds, and is now shifting focus to monetization and asset expansion.

Bhatia writes that these efforts are expected to support both revenue and contribution profit growth in 2025 and beyond.

Price Action: SOFI shares are trading higher by 2.01% to $13.98 at last check Friday.

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