Truist Begins Coverage of Sofi (SOFI) with Hold Rating

On June 2, Truist Securities initiated coverage of SoFi Technologies, Inc. (NASDAQ:SOFI) with a Hold rating and a $14 price target, reflecting a cautious stance despite optimism around parts of the business. Analyst Matthew Coad outlined a nuanced view, citing strengths in SoFi’s Financial Services segment but raising concerns over broader valuation and risk factors.

A senior financial advisor shaking hands with a client next to a wall case displaying certificates of successfully completed financial services.

Truist sees upside in SoFi’s loan platform, noting that average revenue per user continues to trend upward. The firm believes this segment is well-positioned for sustained growth, benefiting from digital-first infrastructure and increased user engagement. However, enthusiasm is tempered by broader company-level challenges. Coad expressed skepticism around SoFi’s long-term growth forecasts, particularly those projected for 2026 and 2027. Truist believes current expectations are too aggressive given the evolving macroeconomic landscape and regulatory headwinds. The firm argues that a reset of forward estimates may be needed to bring projections in line with more realistic assumptions.

Additionally, concerns around credit exposure loom large. Truist cautions that the risk embedded in SoFi’s lending operations, especially in a higher-rate environment, may not be fully reflected in the stock’s current valuation. While the financial services side of the business continues to show promise, the firm urges investors to take a balanced view. Until growth targets are recalibrated and credit risks better understood, Truist prefers to stay on the sidelines with a neutral stance.

SoFi Technologies, Inc. (NASDAQ:SOFI), founded in 2011, is a mission-driven financial services company focused on helping members achieve financial independence. It offers a wide range of digital-first products—including loans, banking, investing, and insurance—designed to support members throughout every life stage. SoFi’s personalized “member home experience” boosts engagement and product adoption, while strategic acquisitions and partnerships expand its technology platform. The company emphasizes innovation, data-driven services, and cost-effective, integrated solutions for both individuals and enterprises.

While we acknowledge the potential of SOFI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOFI and that has 100x upside potential, check out our report about this cheapest AI stock.

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