SoFi Technologies (SOFI) stock soared 16% on Tuesday morning after the company delivered a stellar Q2 earnings report. The fintech firm beat Wall Street estimates across the board and raised its full-year guidance. This led several Top analysts to share a bullish stance on SOFI stock.
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SOFI’s Q2 Highlights
The company reported Q2 revenue of $858 million, up 44% year-over-year and beating analyst estimates of $801 million. Also, adjusted EPS of $0.08 surpassed the Street’s forecast of $0.06. Further, charge-offs declined from 3.31% to 2.83%, signaling stronger credit performance and risk management.
CEO Anthony Noto called it an “exceptional second quarter,” citing strong growth in personal, student, and home loans, as well as fee-based revenue. Looking ahead, SoFi expects $3.38 billion in revenue for FY25, up from its previous range of $3.24 billion to $3.31 billion.
Bullish Analyst Reactions
Mizuho analyst Dan Dolev praised SoFi’s Q2 performance, highlighting the jump in revenue growth and margin expansion. The analyst noted declining charge-offs and raised guidance as “big positives,” maintaining a bullish stance.
Similarly, Jefferies analyst John Hecht said the beat-and-raise report signals that the positive momentum will likely continue throughout 2025. The five-star analyst reiterated his Buy rating and set a $27 price target.
William Blair Analyst Sees Buying Opportunity
William Blair analyst Andrew Jeffrey encouraged investors to buy SoFi stock. He believes the market is beginning to see how quickly SoFi is shaking up traditional banking. Also, the analyst sees potential for the stock’s valuation to rise as investors better understand its strong fee-based income and solid credit performance.
Jeffrey noted that SoFi is currently trading at a 36% discount to similar high-growth fintech companies. Based on these projections, the analyst expects the stock to reach $30 per share, offering over 30% upside.
However, he stated some risks, such as credit quality, funding, competition, regulation, and the overall economic conditions.
Is SOFI Stock a Good Buy?
Turning to Wall Street, SOFI stock has a Hold consensus rating based on five Buys, nine Holds, and three Sells assigned in the last three months. At $17.08, the average SOFI stock price target implies a 27.92% downside potential.
