Deutsche Bank (DB) remains positive on the outlook for online lender SoFi Technologies (SOFI).
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Mark DeVries, a five-star rated analyst, raised Deutsche Bank’s price target on SOFI stock to $14 from $11 while maintaining a Hold rating on the shares as part of a 2025 outlook for consumer finance companies. DeVries expects SoFi to benefit over the coming year from consumer credit and spending.
In his note on SOFI stock, DeVries said that the results of the U.S. election last November “appear to have rekindled animal spirits” in the stock market, boosting both business and consumer confidence in anticipation of a more pro-business political environment under president-elect Donald Trump.
Lower Interest Rates
Those “animal spirits” should benefit SOFI stock. So too should lower interest rates. While expectations for further rate cuts from the U.S. Federal Reserve have eased, the market still expects at least two 25-basis point rate reductions in 2025, noted DeVries.
Deutsche Bank sees lenders such as SoFi Technologies that offer credit cards and home mortgages continuing to benefit as rates move lower, alleviating pressure on consumers and boosting their spending. DeVries concluded that he continues to see “considerable potential upside” in SoFi and other stocks that were big outperformers in 2024.
SOFI stock has gained 73% in the last 12 months.
Is SOFI Stock a Buy?
The stock of SoFi Technologies has a consensus Hold rating among 14 Wall Street analysts. That rating is based on five Buy, six Hold, and three Sell recommendations issued in the last three months. The average price target on SOFI stock of $11.46 implies 21.35% downside risk from current levels.
