SoFi TechnologiesSOFI

A shift in the makeup of Congress is expected to move the focus toward oversight rather than passing new laws like the Clarity Act, which would have provided clearer rules for the crypto industry. This matters for SoFi because its growth plan involves becoming the back-end infrastructure for digital payments and stablecoins, which are digital tokens pegged to the dollar.

While some lawmakers have become more open to digital finance, a slower pace for new regulations could delay SoFi's ability to scale its business-to-business technology platform. For now, this is a trend to watch rather than a reason to change our view, as the company's core banking and lending business remains the primary driver of its profits.

Source: CNBC

UBS raised its target from $21 to $22 but kept its rating at neutral, meaning they do not yet see a clear reason to buy or sell. This follows a week of several other analysts adjusting their targets after the company's recent earnings report, bringing the average target across all firms to $22. Since this was a small target tweak without a change in the firm's actual recommendation, it is a routine update. The stock is currently trading well below this average target, suggesting analysts generally believe the business is worth more than its current price.

Source: UBS

Scotiabank maintained its positive rating on the company and set a price target of $26. This target is higher than the average analyst target of $22 and suggests the firm sees significant room for the stock to rise from its current price of about $17. This move follows the company's recent earnings report where it beat expectations and raised its outlook for the year. While a target change like this is routine, it shows that analysts are gaining confidence in the company's ability to grow its digital banking and technology platforms.

Source: Scotiabank

After SoFi reported its October results, we raised our projections for its revenue and profit through 2027. We added a new risk to our analysis regarding how many large customers its technology segment relies on, following the loss of a major client. We have also started tracking how much benchmark interest rates move the value of the loans the company holds on its books. Finally, we updated our expectations for the share of members who use more than one financial product to 51%.

Truist Financial lowered its price target for SoFi to $16 from $19. A price target is what an analyst thinks a stock will be worth in the next year. This is a routine adjustment that brings the firm's target closer to where the stock is currently trading, and it does not change the firm's overall rating on the company.

Source: Truist Financial

Metrics we are tracking