Analysts revise SoFi stock price targets

Core Viewpoint - SoFi Technologies exceeded Wall Street expectations in Q4 2024 but faced concerns regarding profitability, leading to a decline in stock price and mixed analyst outlooks [1][4][5]. Financial Performance - SoFi reported adjusted net revenue of $739.1 million for Q4 2024, a 24% year-over-year increase, surpassing the analyst consensus of $674.6 million [4]. - Adjusted earnings per share rose 150% to $0.05 [4]. - For Q1 2025, SoFi anticipates adjusted net revenue between $725 million and $745 million, exceeding Wall Street projections of $699 million, but EPS forecast of $0.03 falls short of expectations of $0.06 [5]. Stock Performance - Shares of SoFi dropped over 10% to close at $16.08 on January 27, marking a 5% decline over the past five days [2]. - Despite the recent pullback, the stock remains up 13% year-to-date, with a 44% increase over the past three months and a 76% rise over the past year [3]. Analyst Perspectives - Bank of America analyst raised the price target to $13 from $12 but maintained an 'Underperform' rating, citing impressive revenue upside but higher near-term costs [7]. - Needham analyst raised the price target to $20 from $13 and reiterated a 'Buy' rating, highlighting strong Q4 performance and future growth opportunities [8]. - JPMorgan maintained a Neutral stance with a $16 price target, acknowledging strong Q4 revenue but expressing concerns over FY2025 EBITDA guidance [11]. Growth and Future Outlook - CEO Anthony Noto described 2024 as the company's 'best year ever,' with record member additions of 785,000 and over 1.1 million new product additions in the quarter [4]. - Analysts noted that the recent pullback in shares could present a buying opportunity for long-term investors, despite near-term profitability challenges [12].