SoFi Technologies (SOFI) stock has rallied about 16% over the past month and is up by an impressive 69% year-to-date, thanks to the fintech company and digital bank’s solid execution and robust financials. Moreover, the increased hopes of a rate cut, which could fuel higher demand for loans, are driving SOFI shares higher. While investors seem upbeat about the financial services company, Wall Street analysts are divided on SOFI stock, with the consensus rating indicating a cautious stance and a possible downside risk from current levels.
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Analysts Have Mixed Views on SOFI Stock
SoFi Technologies continues to grow at a strong rate despite an uncertain macroeconomic backdrop. The company’s revenue grew by 43% in the second quarter, marking a significant acceleration from 20% in Q1 2025. SoFi’s growing customer base, expanding product portfolio, and focus on growing fee-based revenue are driving the growth in its top line. The company added a record 850,000 members in Q2, increasing the total base to 11.7 million.
In a recent research report, Needham analyst Kyle Peterson reiterated a Buy rating on SoFi Technologies stock and increased his price target to $29 from $25. SOFI stock has significantly outperformed the S&P 500 Index (SPX) year to date. Nevertheless, the 4-star analyst believes that there is still more room to run, given the company’s solid capital ratios, rapidly expanding loan business, and the potential for other ancillary business lines, such as crypto/Blockchain, and tech platform solutions to generate “above-trend growth.”
Additionally, Peterson expects favorable trends in funding availability and costs to support further growth in the lending business, especially if the Federal Reserve cuts interest rates later this year.
Like Peterson, several analysts have acknowledged the company’s strong performance. However, they prefer to be on the sidelines due to SOFI stock’s elevated valuation and intense competition in the fintech space.
Is SOFI a Good Stock to Buy?
Overall, Wall Street has a Hold consensus rating on SoFi Technologies stock based on nine Holds, five Buys, and four Sell recommendations. The average SOFI stock price target of $20.25 indicates a possible downside of 22% from current levels.
