SoFi Q4 had something for bulls and bears, says Barclays

Barclays says SoFi Technologies’ Q4 results contained something for both bulls and bears. Bulls will focus in on GAAP profitability and an earnings guidance that was better than expected, while bears will point to credit performance, lower revenue growth in 2024, and questions on the discount rate assumptions, the analyst tells investors in a research note. The firm says the 2024 guidance “is what matters here for the time being” as SoFi indicated it will be GAAP profitable in 2024 and beyond. As the Street recalibrates expectations to the near- and intermediate-term guideposts from the company, the measurables for beats and misses become more defined, says Barclays. The firm sees meaningful upside to the shares if the outlook plays out as SoFi expects, but thinks there are execution risks. It keeps an Equal Weight rating on the shares with a $10 price target.