Why This Bullish SoFi Analyst Sees Growth Ahead

SoFi Technologies Inc SOFI is poised to generate strong revenue and EBITDA growth driven by its Galileo platform and member growth initiatives, according to BofA Securities.

The SoFi Technologies Analyst: Mihir Bhatia initiated coverage of SoFi Technologies with a Buy rating and $17 price target. 

The SoFi Technologies Thesis: The company could generate compounded annual revenue growth of more than 40% between 2021 and 2024, with substantial margin expansion from an estimated 3% in 2021 to 22% in 2022, Bhatia said in the initiation note.

“SOFI offers one of the broadest array of products across the neobank space including deposit accounts, loans (student, home, personal), and investment accounts,” the analyst wrote. He added that the company’s Galileo platform is used by 90% of neobanks.

“The recently approved bank charter also provides incremental upside and near-term catalyst potential as estimates and guidance are likely to be reset higher once SOFI provides more details during 4Q earnings,” Bhatia further mentioned.

SOFI Price Action: Shares of SoFi Technologies were up 1.22% at $12.54 Friday afternoon.