After the Federal Reserve’s latest rate cut, investors are asking which fintech companies stand to benefit most. In a new report, Mizuho said the effects will vary across the sector, but bank processors, trading platforms, and consumer lenders are likely to emerge as the biggest winners.
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Mizuho Highlights Fintech Winners
Mizuho highlighted several fintech names that stand to gain as rates move lower. Among bank processors, the firm named FIS (FIS) and Fiserv (FI) as key beneficiaries, explaining that when rates fall, customers tend to hold larger balances in transaction accounts, which helps drive growth for these companies.
On the trading side, Mizuho pointed to Robinhood (HOOD), Coinbase (COIN), and eToro (ETOR) as likely beneficiaries. The analysts noted that lower rates often drive higher trading volumes, which in turn lift commission revenue. Based on this view, the firm raised its price target on Coinbase to $300 from $267, while keeping a Neutral rating.
In consumer lending, Mizuho sees Upstart (UPST), Affirm (AFRM), and SoFi Technologies (SOFI) as well positioned. The analysts explained that lower rates improve credit spreads and encourage loan growth, creating a more supportive environment for these companies. Reflecting this view, the firm raised its price target on SoFi to $31 from $26 per share.
Not All Fintechs Benefit from Rate Cuts
Not every company in the fintech space will gain from falling interest rates. Mizuho flagged Circle Internet Group (CRCL), the issuer of the USDC stablecoin, as a clear loser. The firm explained that USDC’s revenue is fully tied to yields, so lower rates directly reduce the company’s earnings.
The analysts also reviewed large payment networks and financial services firms. PayPal (PYPL) may see only a limited benefit, while Visa (V) and Mastercard (MA) could face mixed outcomes depending on transaction volumes across different markets.
Which Is the Best Fintech Stock to Buy?
We used the TipRanks Stock Comparison Tool to see which fintech names highlighted by Mizuho look most attractive to Wall Street. Investors should still do their own research before making any decision.
Currently, Fiserv holds a Strong Buy consensus rating with the highest upside potential of about 43%. FIS also shows solid upside of over 30%, though it carries a Moderate Buy rating. Meanwhile, SoFi Technologies carries a Hold rating, with analysts expecting about 27% downside from current levels based on the average price target of $20.61.
