SoFi Technologies Inc. (NASDAQ:SOFI) drew bullish coverage Monday as Piper Sandler initiated coverage with an Overweight rating and a $22 price forecast.
Analyst Patrick Moley said SoFi offers investors two key growth drivers: a large lending and debt-consolidation market and a product ecosystem that is driving greater adoption among new and existing customers. Piper Sandler’s price forecast is based on about 25 times its fiscal 2027 earnings estimate.
The firm expects SoFi to generate $4.89 billion in revenue and earnings of 63 cents per share in 2026. For 2027, it forecasts revenue of $6.14 billion and earnings of 88 cents per share.
Product Flywheel Gains Momentum
Piper Sandler said SoFi’s expanding financial ecosystem is helping the company deepen relationships with customers.
SoFi offers checking and savings accounts, investing products, credit cards and insurance alongside its lending business. In the second quarter, product growth reached 43% year over year, compared with 35% growth in members. The firm said that gap shows customers are increasingly using multiple SoFi products.
Piper Sandler expects SoFi’s revenue to grow at a 22% compound annual rate from 2026 through 2028. It forecasts adjusted EBITDA growth of 27% over the same period.
The firm said SoFi’s current share price offers an “attractive entry point” for long-term investors.
Refinancing Opportunity Stands Out
The analyst also sees a significant opportunity in credit card and student loan refinancing.
SoFi’s customer base skews toward highly creditworthy consumers in their late 20s through early 40s. Piper Sandler said that demographic positions the company well to capture refinancing demand.
Meanwhile, SoFi has room to expand lending. Its total capital ratio stood at 18.8% at the end of the second quarter, while SoFi Bank’s ratio was 15.3%. Both provide a cushion above the 10.5% regulatory minimum.
Piper Sandler said the company deserves a premium valuation because of its banking penetration, multi-product adoption and higher-income, higher-quality customer base.
However, the firm flagged rising credit losses, interest-rate volatility, dilutive acquisitions and heavy spending with limited revenue benefits as key risks to its outlook.
SOFI Price Action: SoFi Technologies shares were up 0.41% at $18.36 at the time of publication on Monday, according to Benzinga Pro data.
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