SoFi Stock Forecast: Analysts Assess the Potential to Reach $16

SoFi Technologies (SOFI:NSD) has experienced significant stock price fluctuations. Can it achieve the coveted $16 milestone? Analysts provide their perspectives on the SOFI stock forecast.

Analyst Optimism Amidst Challenges:

SoFi stock has experienced significant fluctuations in its value since July, but Truist Financial analyst Andrew Jeffrey remains optimistic. He anticipates that SoFi stock could double over the next year, potentially reaching $16. However, this rosy outlook faces challenges, primarily driven by the current high-interest rate environment, which could impact the company’s near-term prospects.

SoFi’s Positive Indicators:

Despite these challenges, SoFi has maintained robust financial performance, recently raising its full-year revenue and EBITDA guidance during its second-quarter conference call. The company continues to benefit from the sustained momentum in personal loan originations. Moreover, a consistent growth in its deposit base augurs well for future expansion.

This expansion not only reduces overall funding costs but also enhances lending capacity, leading to improvements in net interest income and a more stable funding model. Furthermore, the recovery in home loan originations and a robust Technology Platform business provide a solid foundation for growth.

Impact of High-Interest Rates on SoFi:

However, it’s important to note that the high interest rate environment could negatively impact loan origination and overall performance. Goldman Sachs analyst Mike Ng, echoing these concerns, reiterated a Hold rating on SoFi stock on September 6. While he applauds the growth in the company’s deposit base and its efforts to lower funding costs, he remains concerned about loan origination demand, price discovery for loans on the balance sheet, and the lack of profitability in the Financial Services segment.

SOFI Stock Forecast:

Truist Financial analyst Andrew Jeffrey’s optimistic outlook of SoFi stock doubling is balanced by the near-term headwinds posed by higher interest rates and lower non-interest income. Based on the SOFI stock forecast from 15 analysts, the average target price is $8.41.

Analysts Ratings:

The average analyst rating is Buy. However, Stock Target Advisor’s analysts are bearish, driven by 6 negative signals against 2 positive signals.

Market Performance:

As of the last closing, the stock price stood at $7.99. This price has changed by +5.97% over the past week, -9.10% over the past month, and +63.73% over the last year.

Conclusion

SoFi Technologies’ stock performance remains a subject of debate among analysts, with optimism tempered by the challenges posed by the current high-interest rate environment. While some foresee the stock doubling to $16, others express concerns about loan origination demand and profitability.

Maryam Nasir