Shares of SoFi Technologies — a San Francisco-based financial services provider in which I own shares — trade 52% below their April 2021 high of $25. Does that mean the stock will keep falling or is it a buy?
Despite its losses which may have prompted a rise in bets against the stock — as I wrote I wrote last September short interest rose 33% to 4.3% last August and has since soared to 18.2% — here is the case for buying these shares:
- Expectations-beating financial performance and prospects
- Continued investment in new products and more efficient operations
- High analyst price targets
High price targets
With SoFi stock trading at nearly $12 a share, analysts see the shares going higher. The average analysts expects roughly 58% upside to $18.85, according to TipRanks.
Here are some individual analyst price targets:
- Bank of America BAC +1.8% sees 17% upside to $14
- Oppenheimer expects a 50% rise to $18
- Wedbush envisions a 65% rise to $20
Dolev’s $17 price target implies roughly 45% upside. As he wrote this week, “Results were very strong, marked by improving KPIs across the board including yet another acceleration in incremental members, a very large jump in products per member and faster growth in Galileo vs. prior quarters. FY guidance too was very upbeat and significantly ahead of expectations.”
Another analyst, Rosenblatt’s Sean Horgan, sees about 88% upside in the stock abetted by the possibility of upside surprise due to the absence of a significant revenue forecast from SoFi Bank for the first quarter of 2022. He also noted that “operating metrics such as Galileo accounts and total products ‘surprised consensus to the upside,’” according to TipRanks.