By Mackenzie Tatananni

SoFi Technologies offers investors a "compelling long-term investment opportunity," Citizens JMP analysts wrote on Friday as they initiated coverage on the fintech.

Analysts led by Devin Ryan rate Sofi at Market Outperform with a $17 price target. Shares were up 4.4% to $12.85 on Friday, with the price target suggesting 32% upside.

SoFi was founded in 2011 with a focus on student loan refinancing. However, the platform has grown since then to favor fee-based revenue sources.

Today, SoFi has over 10 million users and is a comprehensive "one-stop shop" for borrowing, saving, spending, investing, and protecting assets, the analysts wrote.

The company achieved profitability under generally accepted accounting principles across all of its business segments last year and is now at an "inflection point," with earnings potential that the market is currently undervaluing, in their view.

The firm's investment thesis is rooted in a "massive addressable market opportunity." SoFi operates in the business-to-consumer and business-to-business financial services markets, which are each valued at billions of dollars.

Sofi's current market share is measured in the tens of basis points in key segments, among them wealth management and banking, Citizens JMP noted. With annual revenue growth exceeding 40% over the past five years and the number of members on the platform surging 900% since 2019, the analysts see this as evidence that the company's growth strategy is working.

The analysts forecast 25% revenue growth this year and 22% in 2026, but they believe the company has even more greenfield ahead.

In their view, SoFi is on track to achieve revenue of over $9 billion by 2030 and earnings of around $1.75 a share, "highlighting the exponential potential relative to the $0.15 generated in 2024."

The analysts also cited the stock's attractive valuation, "particularly when looking through a longer-term lens."

Based on the firm's 2030 model, shares trade at just seven times 2026 estimates, "an even more compelling illustration if the firm executes as we expect," the analysts wrote.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 25, 2025 12:35 ET (16:35 GMT)

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