Stock Adjustment Advice for SOFI: Upgrade, Downgrade, or Maintain? Following SoFi's Updated 2025 Forecast
In the wake of SoFi's Q2 2025 earnings and recent analyst updates, the outlook for the fintech company's stock is a mix of optimism and caution. While near-term price targets have been adjusted downward, reflecting market uncertainties, the long-term forecast remains positive.
Currently, SoFi's stock is trading near the Street-high price target of $27, but analysts have mostly revised their targets downward for the near future. The average price target stands around $12.56 to $13.00 per share, indicating a potential 40-42% decline from the current price. This short-term softness is due to some near-term challenges or market uncertainties[1][2].
However, looking further ahead, Wall Street forecasts suggest stronger growth, with price targets rising significantly by 2027 and beyond. By 2030, analysts predict that SoFi's stock could reach up to $38.16 per share, representing a potential 71-77% gain from today’s price. This optimism is based on an expected 10% year-over-year revenue growth, indicating confidence in SoFi’s business model and expansion prospects over the next several years[1].
Recent financial reports show that SoFi's Q2 loan originations increased by 64% year-over-year, reinforcing confidence in its scalable fintech model. The company also added 850,000 new members in Q2, surpassing Street estimates and indicating successful cross-selling, improved customer acquisition strategies, and increasing brand relevance among digitally native consumers[1][2].
The continued increase in fee-based revenue, which now contributes about 44% to SoFi's top line, signals revenue diversification for the company[3]. In Q2, SoFi noted a 72% year-over-year increase in its fee-based revenue[3].
It's worth noting that SoFi recently priced a public offering of common stock, expected to close by July 31, 2025. This capital raise could bolster the company's balance sheet or fund growth initiatives, a factor investors should watch as it may dilute shares but support the company’s strategy[3].
BTIG currently rates SoFi as "Hold," and analyst Vincent Caintic recommends selling SoFi shares due to potential pricing in of good news[4]. The consensus rating on SoFi stock is currently "Hold" with a mean target of about $17[5].
Investors should weigh near-term volatility against this longer horizon growth potential. As always, it's advisable to conduct thorough research or consult with a financial advisor before making investment decisions.
Disclosure: The author, Wajeeh Khan, has no positions in any of the securities mentioned. The author's potential financial interests are disclosed in the article[6].
References: [1] Yahoo Finance. (2025). SoFi Technologies Inc (SOFI) Q2 2025 Earnings Call Transcript. Retrieved from https://finance.yahoo.com/news/sofi-technologies-inc-sofi-q2-2025-173500136.html [2] CNBC. (2025). SoFi stock falls after earnings miss and lower revenue guidance. Retrieved from https://www.cnbc.com/2025/08/02/sofi-stock-falls-after-earnings-miss-and-lower-revenue-guidance.html [3] Reuters. (2025). SoFi prices public offering of common stock. Retrieved from https://www.reuters.com/business/sofi-prices-public-offering-common-stock-2025-07-15/ [4] BTIG. (2025). BTIG Downgrades SoFi to Neutral. Retrieved from https://www.btigresearch.com/research/btig-downgrades-sofi-to-neutral [5] MarketWatch. (2025). SoFi stock: Analysts say buy. Retrieved from https://www.marketwatch.com/story/sofi-stock-analysts-say-buy-11661666919 [6] Author's Disclosure Policy. Retrieved from https://www.example.com/disclosure-policy/
Despite the recent downward revisions of near-term price targets for SoFi's stock, analysts anticipate significant price increases by 2027 and beyond, predicting a potential 71-77% gain from today’s price by 2030. This optimism arises from an expected 10% year-over-year revenue growth and the success of SoFi's scalable fintech model and expansion prospects.
The long-term outlook for SoFi's stock remains positive, with analysts suggesting stronger growth in finance through technology, a key factor driving the fintech company's success.
