Moshe Orenbuch, an analyst from TD Cowen, has initiated a new Hold rating on SoFi Technologies (SOFI).
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.
Moshe Orenbuch’s rating is based on several factors, including SoFi Technologies’ strategic positioning as a leading neobank catering to higher earners with a broad range of financial products. The company’s expansion from student loan refinancing to a comprehensive suite of financial services, such as checking and savings accounts, brokerage, and credit cards, demonstrates its ability to leverage customer acquisition costs effectively. Additionally, the acquisition of a bank in 2022 has strengthened SoFi’s customer retention through consumer deposits, although it temporarily exited the crypto market.
SoFi’s technological advancements, highlighted by the acquisitions of Galileo and Technisys, have enhanced its product development capabilities and accelerated its transition to a cloud-native, API-driven platform. Despite a challenging macroeconomic environment with rising interest rates, SoFi has achieved a 37% revenue CAGR from 2021 to 2024, with significant growth in its Financial Services segment. However, the Hold rating reflects a cautious outlook, considering the company’s current valuation and the competitive landscape, despite its strong product diversification and growth potential.
Orenbuch covers the Financial sector, focusing on stocks such as Capital One Financial, SLM, and American Express. According to TipRanks, Orenbuch has an average return of 23.5% and a 71.28% success rate on recommended stocks.
In another report released yesterday, J.P. Morgan also assigned a Hold rating to the stock with a $16.00 price target.