SoFi Technologies Inc. (SOFI) stock surged 5.08% in pre-market trading on Friday, following a bullish initiation from Citizens JMP. The financial technology company's shares received a boost after the analyst firm started coverage with a "Market Outperform" rating and set a price target of $17, implying a significant upside of approximately 38% from current levels.

Citizens JMP's positive outlook on SoFi is based on the company's strong growth trajectory and improving profitability profile. The analyst firm appears confident in SoFi's potential, citing its undervaluation relative to its earnings potential over time. This vote of confidence from Wall Street comes at a crucial time for SoFi, as the fintech sector faces increasing competition and regulatory scrutiny.

The pre-market rally in SoFi's stock price suggests that investors are reacting favorably to the analyst's optimistic view. However, it's worth noting that the stock has faced challenges this year, with shares down 24% year-to-date prior to today's surge. This recent uptick may signal a potential turning point for SoFi if the company can deliver on the growth and profitability expectations set by analysts.