SoFi Technologies is a long-term earnings grower that is only getting started, according to Citizens JMP. Analyst Devin Ryan initiated coverage of SoFi with a market outperform rating and $17 price target. That forecast implies about 38% potential upside for the stock, which is down 16% this year. Ryan's investment thesis revolves around SoFi's growth potential, strong product cycle and profitability. Shares popped more than 5% on Friday, bringing the week's gains to more than 17%. On Tuesday, SoFi announced it is expanding its members' access to private market funds, which give investors exposure to privately held companies before their potential public launch, through a new class of its Cosmos Fund. This builds on a partnership with Templum announced in December. SOFI 1Y mountain SOFI stock performance. SoFi's three businesses — lending, financial services and technology — are profitable and the company is set to see 25% revenue growth in 2025 and 26% growth in 2026, according to the analyst. "Having achieved GAAP profitability in 2024, SoFi is at an inflection point, with substantial earnings potential that we believe the market is currently undervaluing, offering a compelling long-term investment opportunity," Ryan wrote in a Friday note to clients. SoFi's technology unit has a roughly $20 billion total addressable market with clients such as fintech Chime and Robinhood, but it only has between 1% and 2% of market penetration today. Ryan sees this as an opportunity for powerful growth. He expects five-year annual revenue growth of more than 40% and an increasing membership count, he said. Ryan is also bullish on SoFi's continuous product launches and low customer acquisition costs, which allow the company to boast strong economics. "The firm's modern app ecosystem and ownership of the economic value chain provides a better customer experience, supports multi-product adoption, and accelerates the flywheel of more member growth and higher lifetime member values," Ryan said. Wall Street has mixed ratings on SoFi. Of the 18 analysts that cover the stock, five rate it a buy or strong buy, while eight rate it a hold and three rate it an underperform, per LSEG. The average analyst price target also suggests just 5.4% upside. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
