UPDATE: Goldman Sachs Starts SoFi Technologies (SOFI) at Neutral

January 17, 2022 10:14 PM EST
Get Alerts SOFI Hot Sheet
Price: $7.50 -3.23%

Rating Summary:
    8 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
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(Updated - January 18, 2022 5:01 AM EST)

Goldman Sachs analyst Michael Ng initiates coverage on SoFi Technologies (NASDAQ: SOFI) with a Neutral rating and a price target of $16.00.

The analyst comments "SOFI is a financial services platform that primarily operates in the US that allows its retail customers to borrow, save, and spend through loan products and financial services; SOFI also offers fintechs & neobanks a banking-as-a-service technology through Galileo. We forecast SOFI to realize a 37% 4-year adjusted revenue CAGR with $1.1 bn of EBITDA by 2025. First, Lending should realize a growing loan book driven by the end of the student loan moratorium, share gains in personal loans, and expansion into mortgage. Second, member and engagement growth should drive Financial Services with increased usage of deposit accounts, investing, and card spending. Third, Technology will benefit from demand for banking-as-a-service and modern card issuing & processing technology and Galileo’s experience and expertise, particularly among fintechs and digital banks customers. A SOFI bank charter could provide upside optionality and has the potential to reduce funding costs and increase net interest income. However, with SOFI trading at ~10X 2022 EV/sales, we view SOFI’s growth opportunity as largely reflected in current valuations. Our 12-month target price of $16 is based on our sum-of-the-parts analysis and implies ~8X NTM+1Y revenue."

For an analyst ratings summary and ratings history on SoFi Technologies click here. For more ratings news on SoFi Technologies click here.

Shares of SoFi Technologies closed at $13.20 yesterday.


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