Expert Outlook: SoFi Technologies Through The Eyes Of 4 Analysts

In the preceding three months, 4 analysts have released ratings for SoFi Technologies SOFI, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $15.12, a high estimate of $20.00, and a low estimate of $9.50. Marking an increase of 41.71%, the current average surpasses the previous average price target of $10.67.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive SoFi Technologies. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|-----------------|--------------------|--------------------| |Devin Ryan |JMP Securities |Announces |Market Outperform| $17.00|- | |Michael Ng |Goldman Sachs |Raises |Neutral | $9.50|$8.50 | |Tim Chiodo |UBS |Raises |Neutral | $14.00|$10.50 | |Kyle Peterson |Needham |Raises |Buy | $20.00|$13.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SoFi Technologies. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SoFi Technologies compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of SoFi Technologies's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of SoFi Technologies's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on SoFi Technologies analyst ratings.

Delving into SoFi Technologies's Background

SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020, the company also offers payment and account services for debit cards and digital banking.

SoFi Technologies: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: SoFi Technologies's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 22.19%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: SoFi Technologies's net margin excels beyond industry benchmarks, reaching 45.29%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): SoFi Technologies's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.26% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.94%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: SoFi Technologies's debt-to-equity ratio is below the industry average at 0.49, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.