7 analysts have shared their evaluations of SoFi Techs (NASDAQ:SOFI) during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 1 | 3 | 1 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 0 | 1 | 1 | 0 | 0 |
| 2M Ago | 2 | 0 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $12.5, a high estimate of $16.00, and a low estimate of $8.50. This upward trend is evident, with the current average reflecting a 20.66% increase from the previous average price target of $10.36.
Decoding Analyst Ratings: A Detailed Look
The standing of SoFi Techs among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Mihir Bhatia | B of A Securities | Maintains | Underperform | $12.00 | $12.00 |
| Reginald Smith | JP Morgan | Raises | Neutral | $16.00 | $9.00 |
| Dan Dolev | Mizuho | Raises | Outperform | $16.00 | $14.00 |
| Terry Ma | Barclays | Raises | Equal-Weight | $9.00 | $8.00 |
| Michael Ng | Goldman Sachs | Raises | Neutral | $8.50 | $7.50 |
| Kyle Peterson | Needham | Raises | Buy | $13.00 | $10.00 |
| John Hecht | Jefferies | Raises | Buy | $13.00 | $12.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SoFi Techs. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SoFi Techs compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for SoFi Techs's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
To gain a panoramic view of SoFi Techs's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on SoFi Techs analyst ratings.
Delving into SoFi Techs's Background
SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020, the company also offers payment and account services for debit cards and digital banking.
Understanding the Numbers: SoFi Techs's Finances
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, SoFi Techs showcased positive performance, achieving a revenue growth rate of 29.15% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: SoFi Techs's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 8.76%, the company may face hurdles in effective cost management.
Return on Equity (ROE): SoFi Techs's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.01%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): SoFi Techs's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.18%, the company may face hurdles in achieving optimal financial performance.
Debt Management: SoFi Techs's debt-to-equity ratio is below the industry average. With a ratio of 0.54, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Basics of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
