William Blair analyst Andrew Jeffrey has reiterated their bullish stance on SOFI stock, giving a Buy rating on July 31.
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.
Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight SoFi’s strong growth potential and strategic positioning. The decision to raise $1.73 billion in fresh capital provides the company with the flexibility to pursue its growth objectives and potential mergers and acquisitions. This capital infusion is expected not to be dilutive, supporting the company’s financial outperformance. The management’s target of achieving 25% long-term organic revenue growth with a 30% incremental EBITDA margin is considered attainable, supported by the excess demand across SoFi’s product offerings and the introduction of new services like cryptocurrency.
Jeffrey is impressed by SoFi’s diverse revenue drivers, including expanding investment categories, strong personal loan demand, and the potential for increased student and mortgage loan volumes. The company’s brand awareness is on the rise, and as more consumers recognize SoFi’s advantages over traditional banks, member growth is expected to maintain at least a 20% pace. SoFi’s ability to offer fee-free personal loans at lower rates than revolving credit balances is seen as a significant advantage. Additionally, SoFi’s origination momentum is expected to continue, driven by its automated decision engine and robust platform capabilities, which have already shown substantial growth in recent quarters.
According to TipRanks, Jeffrey is a 5-star analyst with an average return of 14.4% and a 64.02% success rate. Jeffrey covers the Technology sector, focusing on stocks such as Fiserv, Corpay Inc, and WEX.
In another report released on July 31, Mizuho Securities also maintained a Buy rating on the stock with a $26.00 price target.