Workflow
SoFi Loan Boom Impresses But Bank Of America Sticks To 'Underperform'
SOFISoFi Technologies(SOFI) Benzinga·2025-06-06 18:43

Group 1 - Bank of America Securities analyst Mihir Bhatia reiterated the Underperform rating on SoFi Technologies, Inc. with a price forecast of 13[1]−SoFihasapproximately11millionmembersandover15millionproducts,showcasingitsexpandingreach[1]−TheFinancialServicesproducts—Money,Relay,andInvest—arebroad−entrytoolsthatattractuserstoSoFi′splatform[1]Group2−SoFileveragesitsFinancialServicesProductivityLooptocross−sellofferings,particularlyintheLendingsegment[2]−TheLoanPlatformhasbeenidentifiedasamajorgrowthdriver,withSoFioriginatingloansinacapital−lightmanner[2]Group3−InthefirstquarterFY25,SoFioriginated13 [1] - SoFi has approximately 11 million members and over 15 million products, showcasing its expanding reach [1] - The Financial Services products—Money, Relay, and Invest—are broad-entry tools that attract users to SoFi's platform [1] Group 2 - SoFi leverages its Financial Services Productivity Loop to cross-sell offerings, particularly in the Lending segment [2] - The Loan Platform has been identified as a major growth driver, with SoFi originating loans in a capital-light manner [2] Group 3 - In the first quarter FY25, SoFi originated 1.6 billion in third-party loans, with an 84% year-over-year growth, indicating strong momentum [3] - Continued growth is expected, especially if credit standards ease [3] Group 4 - SoFi sees its Invest product as a major driver of Financial Services growth in 2025, potentially becoming a standout offering [4] - The company has added features like a robo-advisor and funds, focusing on monetization and asset expansion [4] Group 5 - These efforts are expected to support both revenue and contribution profit growth in 2025 and beyond [5] - SOFI shares are trading higher by 2.01% to $13.98 [5]