Reiterated Price Target for SoFi as Shares Test Key Level
Here's my target price for the financial services firm amid losses across the market.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Love it when a plan comes together. Well, let's hope this plan doesn't unravel as easily as it played out.
Everyone who reads me knows that I actively trade three former "Stocks Under $10" portfolio names while maintaining core positions in all three. All three, Palantir Technologies PLTR, Rocket Labs USA RKLB and SoFi Technologies SOFI have been huge winners for us since they were trading at very low, single-digit prices per share. If you're reading this, then you also know that these stocks have all been under significant pressure since markets turned and growth became less highly valued. In fact, one of these names is creeping back toward something very close to reflecting a single-digit handle in its per share price.
I speak of SoFi Technologies, led by former Twitter executive, former Goldman Sachs GS executive, former NFL executive and former Army linebacker Anthony Noto. Noto has famously added to his personal financial stake in the firm on a regular basis while CEO.
Anthony Noto, CEO of SoFi
About a month and a half ago, at the Bank of America BAC Financial Services Conference, Noto said:
"We have more confidence than ever in our 2026 EPS guidance of $0.55 to $0.80 per share. And in addition to that from a return profile standpoint, we believe we can drive 20% to 30% return on equity as the business continues to scale and matures. In the near term, we're committed to delivering a normalized 30% incremental EBITDA margin. We want to reinvest $0.70 of every incremental dollar on more engineers, more product, more design, more marketing, better customer service so we can continue to meet our members' needs. And we believe we're great allocators of capital managing risk, and that will drive durable growth, strong returns, and we'll do it through innovation."
The Current Quarter
SoFi will report its first quarter financial results in about a month. Currently, Wall Street sees the firm earning a GAAP $0.04 per share on $742.2 million. Remember, the firm guided a little to the light side at the Q4 post-earnings conference call, so this does not surprise. That would still be up from $0.03 for the year-ago comparison on year-over-year revenue growth of almost 28%.
For the full year, the Wall Street consensus view is for EPS of $0.27, up from $0.15 and revenue growth of 22.5%. Projected fiscal 2026 numbers are for earnings growth of another 74% on revenue growth of a little more than 19%. This firm has been consistent in its performance and growth if not anything else.
Trading and Investing
Yes, I added to my long position on weakness on Monday morning. Why? Very simply, I told you that I would.
Readers may recall that I wrote up a piece about two weeks ago, where I informed readers of my plan to add to my SOFI long if the shares tested their 200-day SMA. At that time, the 200-day SMA stood at $10.90. Monday morning's low for SOFI was $10.98. The stock's 200-day SMA is now $11.20.
Though pierced, the line did hold (for now) and I took action. Remember, a line is not lost when it is pierced, it is lost when contact is broken. Now, we may have, if the line is not lost later today or later this week, a potentially positive technical development, thanks to that 200-day line.
Target Price: $18.50 (reiteration)
Pivot: Apex of center peak of double-bottom pattern (currently $13.90)
Secondary Pivot: 50-day SMA (currently $14.30)
Add: Down to the 200-day SMA (currently $11.20)
Panic: Loss of contact with the 200-day SMA
At the time of publication, Guilfoyle was long PLTR, SOFI and RKLB equity.
