Goldman Sachs assumes coverage on SoFi stock with Neutral rating
Investing.com
Published Jul 14, 2025 06:44AM ET
Investing.com - Goldman Sachs has assumed coverage on SoFi Technologies (NASDAQ:SOFI) with a Neutral rating and a $19.00 price target. The stock, currently trading near its 52-week high of $21.86, has delivered an impressive 204% return over the past year.
The investment bank views SoFi as "an impressive growth story in the neobank space" that targets upper middle income consumers, noting the company has shown progress in diversifying its product offerings and attracting new members through expanded acquisition channels. This growth is reflected in SoFi's robust 23.62% year-over-year revenue growth.
Goldman Sachs highlighted SoFi's recently launched Loan platform business as a likely driver of continued momentum in non-interest income, benefiting from private capital flowing into the consumer credit ecosystem.
Despite positive business momentum, the firm expressed caution about SoFi's valuation at 5.0x tangible book value, describing it as "somewhat disconnected from the return profile of the business." InvestingPro analysis suggests the stock is currently overvalued, with a P/E ratio of 49.3x and RSI indicating overbought conditions. Subscribers can access 12+ additional exclusive ProTips and comprehensive valuation metrics.
Goldman Sachs also noted concerns about SoFi's fair value accounting for its lending business, which represents 53% of revenue, suggesting this accounting approach pulls forward earnings and should anchor valuation more closely to tangible book value than a traditional bank. Despite these concerns, SoFi maintains a GOOD overall financial health score according to InvestingPro 's comprehensive analysis framework.
In other recent news, SoFi Technologies has announced several significant developments. The company has expanded its alternative investments platform by partnering with asset management firms like Cashmere, Fundrise, and Liberty Street Advisors to offer new private market funds. These funds provide retail investors with access to sectors such as artificial intelligence and space technology. Additionally, SoFi plans to introduce international money transfers and cryptocurrency investing services later this year, allowing members to send funds globally and trade cryptocurrencies like Bitcoin and Ethereum.
Analyst activity around SoFi includes a downgrade by Citizens JMP from Market Outperform to Market Perform, noting the company's profitability and potential for growth without external funding. Meanwhile, Keefe, Bruyette & Woods raised its price target from $9 to $13, citing revenue opportunities from SoFi's cryptocurrency trading platform and expanded student lending. However, they maintained an Underperform rating. JPMorgan reiterated a Neutral rating with a $16 price target, highlighting potential revenue from changes in federal student loan policies. These recent developments indicate a period of strategic expansion and market adjustments for SoFi Technologies.
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Written By: Investing.com
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