Fintech company and digital bank SoFi Technologies (SOFI) delivered stellar results for the first quarter of 2025, reflecting continued momentum in its business. While many analysts acknowledged the company’s solid execution in a tough macro backdrop, they remain divided on SOFI stock’s trajectory due to various reasons, including its elevated valuation. Overall, the consensus rating indicates that Wall Street is sidelined on SOFI stock amid fears of a potential economic slowdown sparked by tariff wars, which could impact the company’s business.
Meanwhile, there were many notable positives in SoFi’s Q1 results, including a 34% increase in the company’s member base to 10.9 million members, a 35% growth in total products to 15.9 million, a 101% jump in Financial Services revenue to $303 million, and a 66% growth in loan origination volume.
Analysts Have Mixed Views on SoFi Technologies Stock
Impressed by the solid Q1 results, Needham analyst Kyle Peterson reiterated a Buy rating on SoFi Technologies stock with a price target of $20. The analyst noted that the company had a strong start to 2025, surpassing the Street’s expectations, backed by solid performance of the lending business, both on the balance sheet and loan platform fees.
Peterson contended that while tech product and solutions revenue is off to a slow start this year, he believes that the strong pipeline of new deal wins (such as U.S. Treasury Direct and Wyndham Hotels co-brand deal) will enable acceleration in growth as the year proceeds and into FY26. Though the analyst cautioned investors about some near-term pressures due to macro uncertainty, he thinks that estimates are biased to the upside. He likes SoFi’s focus on prime and super prime consumers at this stage in the credit cycle.
Meanwhile, Barclays analyst Terry Ma modestly raised his price target to $12 from $11, but retained a Hold rating on SOFI stock. The 4-star analyst noted that the company’s Q1 adjusted revenue beat expectations by 4%, driven by the lending segment. Performances of financial services and tech businesses were roughly in line with estimates, pointed out Ma.
Bank of America analyst Mihir Bhatia also noted the company’s strong Q1 results and stated that the Q1 EPS beat was driven by solid revenue and a lower tax rate. He added that SoFi’s business momentum continues to be robust, as reflected in the record 800k new member additions in the first quarter, while maintaining stable products per member. Nevertheless, Bhatia reaffirmed a Sell rating on SoFi stock with a price target of $13, saying, “shares appear priced for perfection, which gives us pause in an uncertain macro backdrop.”
Is SOFI Stock a Buy, Sell, or Hold?
Overall, Wall Street is sidelined on SoFi Technologies stock, with a Hold consensus rating based on five Buys, six Holds, and four Sell recommendations. The average SOFI stock price target of $12.95 implies a modest upside potential of 3.5% from current levels. SOFI stock is down 18% year-to-date.
