Jul. 30 at 12:23 PM
Needham⬆️
$SOFI PT to
$25 from
$20 and reiterated at a Buy rating.
$AFRM $OWL $MA AXP
$V UPST PYPL
Needham said in its note, "
$SOFI's 2Q results came in well above both ours and Street expectations on both the top and bottom line, largely due to growth in the loan platform business which continues to accelerate as private credit demand remains rock solid.
Shortly after reporting earnings,
$SOFI also raised ~
$1.5 billion in common stock through a secondary offering. We estimate that this boosts total risk-based capital at the HoldCo by ~440 bps and takes capital to a level that we expect will help the shares gain additional institutional sponsorship.
In addition, we view the pricing of the deal (~4.4x TBV) as opportunistic and the additional capital gives us further confidence that
$SOFI will be able to reach or exceed its previously provided 2026 EPS target of
$0.55-
$0.80. We are raising our estimates, reiterating our BUY rating, and raising our target to
$25."
