One BTIG analyst just raised their SoFi (NASDAQ:SOFI) stock target, marking the highest price target level for SoFi on Wall Street. Indeed, BTIG analyst Lance Jessurun initiated coverage of SOFI stock, offering a “buy” rating and setting a $14 target.
What do you need to know about SoFi?
Well, on Tuesday afternoon, Jessurun made some kind remarks on SoFi’s place in the fintech world:
“SoFi’s platform boasts a robust product suite and digital interface, and the intuitive UI/UX, member-first approach and cross-selling opportunities have driven significant user growth and uptake of new products.”
According to Jessurun, SoFi is expected to continue growing its user base — and its share price — as the company achieves profitability by the end of this year. The analyst elaborated:
“Going forward, we expect SoFi to benefit from the successful implementation of the banking charter and associated ongoing deposit inflows, in conjunction with margin expansion, member growth, and the strong adoption of financial services products by members.”
SOFI Stock Climbs on BTIG Rating
SOFI stock is enjoying an analyst-fueled uptick today, closing in the green by about 2%. Indeed, it seems analysts and investors alike have taken notice of BTIG’s glowing words and elevated price target.
Reasonably so, SoFi is trending at around $9.70 per share as of this writing, well below Jessurun’s $14 target. Interestingly, this was a major point of the analyst’s assessment:
“SoFi went public as a SPAC in 2021, and has since emerged as a leader in the consumer-focused fintech space, but you wouldn’t be able to tell given the share price performance.”
As many analysts have speculated, SoFi’s share price will likely take an upward turn when the student loan moratorium comes to an end, 60 days after June 30. In the long term, SoFi’s current stock price is something of a discount, given it’s profit trajectory when its biggest source of revenue returns to the fold.
“Ultimately, while SoFi’s shares may be inexpensive now, it’s difficult to see valuation remaining this low with GAAP profitability by the end of FY23, and potential further upside coming from the end to the student loan payment moratorium.”
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
