SoFi Technologies provided solid medium term outlook, says Citi

Citi says SoFi Technologies delivered on Q4 GAAP profitability, as promised, and continued to beat revenue and adjusted EBITDA expectations. While the initial 2024 outlook was mixed, investors focused on the unexpected intermediate term outlook and GAAP profitability turn, the analyst tells investors in a research note. The firm says both the 2024 and intermediate term outlook rely on healthy technology and financial services segment growth and constrained lending segment assumptions, which should alleviate investor concerns about SoFi’s ability to sustain fast profitable growth without leaning too heavily into lending. Citi reiterates a Buy rating on the shares with an $11 price target.