SoFi Technologies (SOFI) PT Lowered to $7.50 at UBS
UBS analyst Tim Chiodo lowered the price target on SoFi Technologies (NASDAQ: SOFI) to $7.50 (from $8.00) while maintaining a Neutral rating.
The analyst comments "SoFi reported adjusted net revenue of $581mm (~4% above Street) driven by beats in Lending and Other revenue, while Financial Services and Technology Platform missed. Adjusted EBITDA of $144mm came in better than Street estimate of $122mm. Tech Platform revenue grew 21% YoY, which showed growth acceleration vs. 13% in Q4 (and 6% in Q3) driven by new clients onboarded over the last three quarters, large bank deals signed in LatAm, and strong monetization of existing clients launching new products. For full year 2024, adjusted revenue guide was raised by ~1%/~$25mm at the midpoint to $2,390- 2,430mm (with ~$26mm beat in Q1 vs guidance). SoFi continues to expect a combined ~50% growth from Tech Platform and Financial Services (with Financial Services now expected to grow more than 75% vs. ~75% prior), while Lending revenues being ~92- 95% of 2023 level. FY 2024 guidance was raised across the board with EBITDA of $590- 600mm (2% above Street at the midpoint) at ~25% margin. GAAP net income of $165-175mm includes a ~$59mm gain on extinguishment of debt in Q1 (vs $95-105mm prior), and GAAP EPS of $0.08-0.09 captures consensus at the low end (vs prior $0.07-0.08). We continue to believe SoFi is relatively well positioned among US Neobanks (a market in which we expect to see both consolidation and re-bundling of services) and that the expectation of sustaining GAAP profitability are positives, although we see a balanced risk-reward."