Stephens & Co. analyst Vincent Caintic initiated coverage on SoFi Technologies Inc (NASDAQ:SOFI) at an Equal-Weight rating with a price target of $7.
The analyst is bullish on SOFI’s strong growth prospects and sees the significantly higher expense ratio (mainly marketing at 36% vs. industry at 8%) as a key driver of profitability.
However, the analyst is scrutinizing if SoFi’s push to profitability will slow the growth, given normalized marketing expenses and lowered membership rewards/perks offerings to customers.
Caintic thinks SoFi can sustain its high loan growth rate through 2025.
The analyst guides 2025 EPS of $0.35, 29% above consensus, on a higher Net Interest Income of $2.17 billion (35% above street estimate).
Read More: SoFi’s Potential for Above-Average Revenue and EBITDA Growth Despite Macro Risks: Analyst Highlights
Price Action: SOFI shares are trading higher by 2.49% at $9.69 on the last check Tuesday.
