Analysts are optimistic about SoFi Technologies’ (SOFI) expanded Loan Platform Business (LPB) opportunities. SoFi’s LPB connects pre-qualified borrowers to loan origination partners and also originates loans on behalf of third parties. On March 26, SoFi announced three new partnerships totaling $3.6 billion in personal loans under LPB:
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- $1 billion from a global bank.
- $600 million with an insurance group over 12 months.
- Up to $2 billion over two years with a top-five global private asset manager.
The LPB is a low-capital, fee-based operation that originates loans for third-party investors without using SoFi’s balance sheet. It earns high-margin revenue from origination and servicing fees. This setup eliminates credit risk and supports scalable growth without heavy funding needs.
Here’s What Analysts Are Saying
Following the announcement, Mizuho Securities analyst Dan Dolev reiterated his Buy rating and Street-high price target of $38 (149% upside potential). He believes these partnerships address two key concerns: (1) It eases fears about consumer private credit drying up, as big-name institutions show strong demand. (2) They counters worries about SoFi’s personal loan performance.
Dolev earlier dismissed short-seller Muddy Waters’ allegations of accounting “abuses.” Combined with solid Q4 results and positive guidance, he believes these deals will drive SOFI stock higher.
Goldman Sachs analyst Will Nance sees the expanded funding as positive. This move aligns with his view that private capital for consumer loans is easily available. Moreover, SoFi’s partnerships insulate it from broader private credit market volatility. Nance reiterated his Hold rating but raised his price target from $24 to $25, implying 64.2% upside.
Is SOFI a Good Stock to Buy?
On TipRanks, SOFI has a Hold consensus rating based on five Buys, eight Holds, and three Sell ratings. The average SoFi Technologies price target of nbsp; 24.46 implies 60.6% upside potential from current levels. Year-to-date, SOFI shares have tumbled 41.8%, despite a 31% past year gain.
