SoFi Technologies is experiencing a rebound, as noted by Piper Sandler, which has given the fintech company an overweight rating and set a price target of $22 per share. This target suggests a 20% upside from the stock's closing price on Friday.
Analyst Patrick Moley emphasized that SoFi benefits from two key growth drivers: a large addressable market in lending and debt consolidation aimed at a younger, creditworthy demographic, and a product flywheel that enhances adoption among both new and existing members. Over the past three months, SoFi's shares have risen 17%, particularly after the company reported strong second-quarter earnings.
However, the stock is still down approximately 30% year-to-date, primarily due to concerns about rising inflation and potential interest rate hikes. Moley views this decline as an attractive entry point for long-term investors, particularly as SoFi could capitalize on significant refinancing opportunities among high-earning millennials.
This perspective contrasts with the broader consensus on Wall Street, where out of 24 analysts, 12 recommend holding the stock, while only eight suggest buying. Following Piper Sandler's positive outlook, SoFi's stock rose more than 2%