StoneX Financial initiated coverage on SoFi Technologies (SOFI) with a Buy rating. The firm set a $25 price target, suggesting significant upside. This initiation follows a year-to-date stock decline of approximately 40%.
Analyst Mark Palmer noted a disconnect between SoFi's stock performance and its operational results.
SoFi achieved record growth in members during the second quarter. It also saw record growth in deposits, products, and profit. Adjusted net revenue grew over 40% year-over-year.
StoneX believes the stock is undervalued. The firm states the market underappreciates SoFi's growth and newer business lines.