Barclays increased the price target for SoFi Technologies (SOFI) stock to $18 from $12 as part of a Q2 earnings preview for the consumer finance space. The investment firm raised its price forecast for SOFI stock to reflect improved card delinquency trends. However, Barclays retained a Hold rating on the fintech giant and digital bank’s stock on valuation concerns.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
SOFI stock surged about 4% on Tuesday as the company announced that its members will now have access to private markets funds from asset management firms, including Cashmere, Fundrise, and Liberty Street Advisors. Through these funds, SoFi Technologies’ investors can gain exposure to several private companies, like OpenAI, SpaceX, Epic Games, and others, across artificial intelligence (AI), space technology, healthcare, and other lucrative growth areas. Investors recently cheered the company’s decision to re-enter the crypto investing space and its plans to offer stablecoins.
Barclays Assigns a Higher Price Target Ahead of SOFI’s Q2 Earnings
Barclays analyst Terry Ma highlighted that the higher price target reflected improved card delinquency trends through May, which are expected to drive a continued improvement in net charge-offs for consumer finance companies.
That said, the 4-star analyst noted that most stocks in the consumer finance group are trading above historical valuation averages, which sets a high bar for outperformance in the second quarter.
Specifically, SOFI stock has surged by 40% over the past month, bringing the year-to-date gains to about 30%. Based on adjusted earnings, SOFI stock is trading at a forward P/E (price-to-earnings) multiple of 68.96x, way above the sector average of 11.21x.
Wall Street’s Expectations from SOFI’s Q2 Earnings
SoFi Technologies is scheduled to announce its earnings for the second quarter of 2025 on July 29. Expectations are high, given the company’s stellar Q1 results, driven by strength in its Financial Services business, a rapidly expanding member base, and an extensive product portfolio.
Wall Street expects SoFi to report EPS (earnings per share) of $0.06, reflecting a significant increase from $0.01 in the prior-year quarter. Furthermore, revenue is expected to grow by 34% to about $802 million.
Is SOFI a Good Stock to Buy?
Amid an uncertain macro backdrop, SoFi Technologies stock scores a Moderate Buy consensus rating based on seven Buys, five Holds, and two Sell recommendations. The average SOFI stock price target of $15.45 indicates a downside risk of about 23% from current levels.
