SOFI Stock Gains After Piper Sandler Calls It A 'High-Growth' Story With A ‘Powerful Product Flywheel’ Against Cautious Wall Street Backdrop

Piper Sandler analyst Patrick Moley gave a the stock an ‘Overweight’ rating with a $22 price target.

• Piper Sandler’s $22 target implies roughly 20% upside, putting its valuation above the broader Wall Street consensus.
• The wider analyst community remains more cautious, with the consensus rating on SOFI at ‘Hold’.
• SOFI’s average price target is around $19.92 as per Koyfin data, below Piper Sandler’s $22 target.

Shares of SoFi Technologies ($SOFI) gained in pre-market trade on Monday after Piper Sandler initiated coverage of the company with an ‘Overweight’ rating, calling it a “high-growth personal finance story” and setting a $22 price target.

In a note to investors cited by TheFly, Piper Sandler analyst Patrick Moley said SoFi offers investors exposure to a large and growing market for lending and debt consolidation, particularly among younger, creditworthy consumers.

Moley also said that SoFi had a “powerful product flywheel accelerating adoption across new and existing members.” The $22 price target implies a potential upside of over 20% from Friday’s closing price of over $18.

SOFI stock gained over 2% in pre-market trade. On Stocktwits, retail sentiment around the digital financial services company trended in ‘bearish’ territory over the past day. 

Analyst Views Remain Split On SoFi Stock

Last week, Truist raised its price target on SoFi to $19 from $18 while maintaining a ‘Hold’ rating, implying a potential upside of just 3%. Truist said its higher estimates for the second half of the year were primarily driven by the flow-through from SoFi's strong balance sheet growth during the second quarter.

SoFi's broader analyst coverage remains mixed and in line with Truist, rather than Piper Sandler. According to Koyfin, the average price target is around $19.92, implying roughly 9% upside from Friday's close. The stock has fallen about 21% over the past year, based on its trailing 12-month return.

Of the 23 analysts covering the stock, 12 have a ‘Hold’ rating. Two analysts rate the shares a ‘Strong Buy’, while another two have a ‘Buy’ rating. Two analysts rate the stock ‘Sell’, and two have a ‘Strong Sell’ rating. That leaves SoFi with a relatively divided view on Wall Street. 

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