Fintech company and digital bank SoFi Technologies (SOFI) recently reported upbeat results for the first quarter of 2025 despite a challenging macro backdrop. While many analysts recognized several positives, including continued expansion in the member base, the consensus Wall Street rating remains a Hold, indicating a cautious stance on SOFI stock due to macro uncertainties and lofty valuation.
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SOFI stock has rallied about 87% over the past year but has declined more than 14% so far in 2025.
Mixed Views on SoFi Technologies Stock
Following the Q1 print, several analysts highlighted SoFi Technologies’ strong execution and continued demand for its offerings, with Q1 2025 seeing a 34% rise in the member base to 10.9 million members. They also noted robust innovation, marked by a 35% increase in total products to 15.9 million.
Moreover, Q1 results indicated that the Financial Services division is a key growth driver for SoFi. Notably, the Financial Services division’s revenue surged 101% year-over-year to $303 million, with its contribution profit jumping 299% to $148 million.
However, critics pointed out the lackluster performance of SoFi’s Technology Platform, which saw a 10% rise in Q1 revenue and only a 1% increase in its contribution profit. They are also concerned about the impact of a potential rise in bad loans if the economic situation deteriorates. Moreover, SoFi’s valuation continues to be a matter of concern. The stock trades at a P/E or price-to-earnings (adjusted) multiple of 47.2x compared to the sector average of 10.6x.
Recent Analyst Comments on SOFI Stock
Recently, Bank of America analyst Mihir Bhatia reaffirmed a Sell rating on SOFI stock with a price target of $13. While the 5-star analyst noted continued business momentum, as reflected in the record 800,000 new member additions in Q1 2025 and steady products per member, he believes that the stock is priced for perfection, which makes him “pause in an uncertain macro backdrop.”
In contrast, Mizuho analyst Dan Dolev reiterated a Buy rating on SOFI stock with a price target of $20 following an investor lunch with the CEO and CFO. The analyst noted that management is optimistic about the company’s ability to withstand macroeconomic uncertainty, as indicated by the improving credit metrics.
Dolev also noted that SOFI’s core borrower base is very attractive, with annual incomes of $158,000 and average FICO scores of 743 for personal loans as of Q1 2025. Consequently, management is positive about the company’s ability to continue to underwrite successfully if macro challenges emerge. Plus, the analyst views the ramp of SOFI’s Loan Platform Business (LPB) as an incremental lever for growth, given that it offers the company the ability to grow its lending total addressable market (TAM) with limited incremental acquisition costs and in a capital-light manner.
What Is the Price Target for SoFi Technologies Stock?
Overall, Wall Street has a Hold consensus rating on SoFi Technologies stock based on five Buys, five Holds, and three Sell recommendations. The average SOFI stock price target of $13.56 implies a modest upside potential of about 3% from current levels.
