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Investing.com - Keefe, Bruyette & Woods raised its price target on SoFi Technologies (NASDAQ:SOFI) to $13.00 from $9.00 on Thursday, while maintaining an Underperform rating on the stock.
The investment firm cited several strong catalysts that have driven SOFI shares higher over the past three months, including revenue opportunities from the company’s recently-announced cryptocurrency trading platform and expanded student lending following legislative changes. This optimism is reflected in the stock’s impressive 207.76% return over the past year, though the current P/E ratio of 47.54 suggests rich valuation levels.
KBW’s analysis indicates these new initiatives could potentially boost SoFi’s revenue by 3-5%, which the firm has incorporated into its updated financial model and price target calculation.
Despite raising estimates "materially," KBW noted its projections remain below both consensus estimates and SoFi’s own guidance for 2026, suggesting the recent stock performance may have outpaced the company’s fundamental value.
The firm’s revised sum-of-the-parts valuation analysis indicates a fair value for SoFi closer to the new $13 price target, even while acknowledging the company’s "exciting growth prospects and strong value proposition."
In other recent news, SoFi Technologies reported first-quarter earnings that surpassed expectations, leading to an increase in its financial guidance. The company experienced robust performance with adjusted revenues and EBITDA exceeding forecasts, and earnings per share also beating estimates. This strong quarter was marked by the addition of 800,000 new members. Meanwhile, Bank of America maintained an Underperform rating for SoFi, with a price target of $13, citing concerns about the macroeconomic environment despite the positive earnings report.
In other developments, SoFi announced plans to launch international money transfers and cryptocurrency investing services later this year, utilizing blockchain networks for efficient transactions. Additionally, SoFi expanded its alternative investments platform to include new private markets funds, providing retail investors access to companies such as OpenAI and SpaceX. The company also detailed the outcomes of its annual stockholder meeting, where ten board members were elected, and executive compensation was approved. Furthermore, JPMorgan reiterated a Neutral rating on SoFi following the passage of legislation that could significantly expand the market for private student loans, potentially benefiting the company.
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