It’s taken off! Piper Sandler initiates coverage with a “buy” rating for $SOFI , with a target price of $22, and says the current level is an “attractive entry point for long-term investors,” because SoFi is entering its next phase of growth.
The firm expects that by 2028, SoFi’s revenue will grow at a 22% CAGR and its adjusted EBITDA will grow at a 27% CAGR, as SoFi combines large-loan and debt-integration opportunities with a broader ecosystem spanning checking, savings, investing, credit cards, and insurance.
The real flywheel effect is cross-selling, with product growth of 43%, surpassing the 35% member growth from the second quarter. Piper says that as customers add more products, this will enhance engagement, lifetime value, and the durability of growth.
The firm expects that by 2028, SoFi’s revenue will grow at a 22% CAGR and its adjusted EBITDA will grow at a 27% CAGR, as SoFi combines large-loan and debt-integration opportunities with a broader ecosystem spanning checking, savings, investing, credit cards, and insurance.
The real flywheel effect is cross-selling, with product growth of 43%, surpassing the 35% member growth from the second quarter. Piper says that as customers add more products, this will enhance engagement, lifetime value, and the durability of growth.