Sofi is expanding its deposit base, reflecting customer confidence and reducing financing costs. With impressive growth, Sofi can represent a significant growth opportunity for 2023. However, investors must consider their risk appetite before making investment decisions
The current share price of Sofi Technologies (NASDAQ: SOFI) is indicated at $8.7, with a target price forecast for 2023. Let’s review the company’s recent performance, forecasts, and milestones
Sofi Technologies Equity Performance
- Last 5 Days: +7.8%
- Last Month: -3.3%
- Last 6 Months: +54.4%
- Last 12 Months: +48.1%
Sofi Stock Price Forecasts for Next Year (Analysts)
- Average Price: $9.5
- Truist: $14
- Morgan Stanley: $7
Sofi Stock Price Forecasts for the Next 4 Years
- 2023 forecast: $7.56
- 2024 forecast: $15.3
- 2025 forecast: $21.7
- 2026 Forecast: $23.5
Sofi Stock Forecast Today
UTC: November 20, 2023, 06:05 AM
- 24 Hour Forecast: Between $6.69 and $6.92
- Weekly Forecast: Between $6.55 and $7.19
General Scenario and Future Perspectives
UTC: November 20, 2023, 12:09 AM
- Market Wisdom: Bullish
- 1st. Market Data: Bullish
- 1b. Technical Recommendation: Neutral
- Wisdom of the Masses: Bullish
- 2nd. Social Media Frenzy: High
- 2b. Social Media Sentiment: High
Q3 2023 Financial Results and Projections for 2023
In the third quarter of 2023, Sofi recorded an adjusted EBITDA of $98 million, an increase of 121% year-on-year. Other key figures include the addition of more than 717,000 new members and a 23% growth in total deposits to $15.7 billion. The new forecasts for 2023 indicate an adjusted net income of $2.045 — $2.065 billion and an adjusted EBITDA of $386 — $396
Growth Plan and Challenges for Sofi
Bullish scenario for Sofi Technologies:
- Bank Concession: Obtaining a bank concession allows Sofi to collect and hold deposits, improving efficiency in lending operations.
- Composition of the Loan Portfolio: Approximately 98% of Sofi’s loan portfolio consists of personal and studio loans, less affected by long-term interest rate fluctuations.
Results Speak Better Than Words:
- Sofi has diversified its product offering, attracting new members and maintaining significant growth in terms of revenues and members.
Resumption of Student Payments:
- With the end of the student payment pause period, Sofi could see an increase in revenues from refinancing student loans in 2023.
Bearish scenario for Sofi Technologies:
- Lack of Transparency on the Banking Strategy: Although the bank concession is positive, the lack of clarity on the banking strategy could create uncertainty among investors.
Sofi: A Good Investment?
Sofi is a financial technology company that offers a range of financial products, but it’s also a relatively new and still unprofitable company. If you’re looking for a growth-oriented investment, Sofi might be a good option. However, it’s important to carefully evaluate investment objectives and risk tolerance before making a decision
Ultimately, investing in Sofi is a personal decision that requires a careful assessment of your needs and preferences.