SoFi Beat on Earnings. Is SOFI Stock a Buy, Sell, or Hold Now?
SoFi (SOFI) shares are inching up on Tuesday, April 29 after the neobank reported market-beating results for its first quarter of 2025.
Adding a record 800,000 new customers helped the fintech push its adjusted revenue up some 33% on a year-over-year basis to $771 million and earn $0.06 a share in its recently concluded quarter.
Analysts, in comparison, were expecting revenue of $739 million and earnings of $0.03 per share, respectively. Including today’s gains, SoFi stock is up more than 55% versus its year-to-date low in early April.
SoFi Stock Rallies on Raised Full-Year Guidance
Investors are cheering SoFi shares also because the financial services company raised its outlook for the full year on Tuesday.
“Upping the guide when others, at best, maintain [theirs] is a sign of stability,” according to senior Mizuho analyst Dan Dolev.
SoFi now expects its adjusted net revenue to fall between $3.235 billion and $3.31 billion in 2025. Its previous outlook called for up to $3.275 billion only.
The company’s revenue and EBITDA estimates for the second quarter topped Street estimates as well, showcasing the “strength of SoFi’s unique strategy, which gives us a sustainable competitive advantage,” said Anthony Noto, the chief executive of SoFi Technologies in a press release today.
SoFi Shares Could Claw Their Way Back to $17
Despite a remarkable rally in recent weeks, a Citizens JMP analyst, Devin Ryan, continues to see significant further upside in SoFi stock.
In his recent report, Ryan talked of SOFI’s exceptional growth potential, adding the company’s improving profitability and a strong product cycle could push its share price all the way back to $17 over the next 12 months.
According to the Citizens JMP analyst, SoFi’s tech platform has a total addressable market of some $20 billion, of which, the Nasdaq listed firm has so far penetrated less than 2.0% only, indicating massive room for growth.
Low customer acquisition costs were among other reasons cited for the bullish view on the fintech stock.
What’s the Consensus Rating on SoFi Technologies?
Investors should note, however, that other analysts are not as bullish on SoFi stock as Citizen JMP.
The consensus rating on SOFI currently sits at “Hold” only with the mean target of $14 indicating potential upside of less than 5% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.