Analyst Sees SoFi Technologies' Higher Expense Ratio As Double-Edged Sword: Here's Why
Portfolio Pulse from Lekha Gupta
Stephens & Co. analyst Vincent Caintic initiated coverage on SoFi Technologies Inc with an Equal-Weight rating and a price target of $7. The analyst is bullish on SoFi's growth prospects and sees the high expense ratio as a key driver of profitability. However, he is scrutinizing if SoFi's push to profitability will slow the growth. Caintic guides 2025 EPS of $0.35, 29% above consensus, on a higher Net Interest Income of $2.17 billion.
July 25, 2023 | 6:11 pm
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Analyst Vincent Caintic is bullish on SoFi's growth prospects but is scrutinizing if the push to profitability will slow the growth. He guides 2025 EPS of $0.35, 29% above consensus.
The analyst's bullish stance on SoFi's growth prospects and the higher than consensus EPS guidance for 2025 could potentially drive the stock price up in the short term. However, the scrutiny on the company's push to profitability could introduce some uncertainty.
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