Analysis: Why SoFi Stock is Expected to Grow by 31% in the Next 12 Months
Why SoFi gets a high price target
SoFi has obtained a national bank charter, enabling it to fund loans with customer deposits, unlike its peers who need to share profits with banking partners. Additionally, its proprietary credit risk evaluation algorithms have led to a low delinquency rate, showcasing its superior risk management.
A buy for investors who can handle the risk
Despite trading at a premium compared to traditional banks, SoFi's rapid growth and customer expansion justify its valuation. The stock's potential 31% gain is supported by its competitive edge in the digital lending space and strong financial performance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.