Piper Sandler first gave SoFi Technologies (SOFI.US) an “increase in holdings”, pointing to the blue ocean of credit for millennials

The Zhitong Finance App learned that Piper Sandler launched coverage of SoFi Technologies (SOFI.US) and gave it a rating equivalent to “buy”, believing that the company has strong growth momentum. Piper Sandler gave the stock an “overweight” rating, and the target price was set at $22.00.

As of press release, the stock price fell slightly by 0.93% during the Monday night trading session.

Analysts Patrick Moley, Will Copps, and Ben Bogdanski pointed out in the research report that SoFi is a vertically integrated digital financial services company whose business covers loans and a range of personal finance products, including checking accounts, savings accounts, and investment accounts.

The investment bank believes that SoFi provides investors with exposure to two major drivers of differentiated growth: First, the loan and debt consolidation market for young people with excellent credit qualifications. The Total Addressable Market (TAM) is huge and continues to expand.

The company targets young people with excellent credit qualifications (mainly millennials and Gen Z), and has a broad market space in the field of personal loans and debt consolidation. As consumer attention to debt management in a high-interest rate environment continues to rise, SoFi's digital-first platform continues to seize market share from traditional banks.

Moley specifically pointed out that SoFi is expected to capture the massive refinancing needs of the high-income, high-quality credit millennial customer base, including credit card and student loan refinancing — these two products are highly compatible with the debt structure of the company's target borrowers.

Second, the strong product flywheel effect is accelerating the adoption and penetration of platform products by new and old members. The research report emphasizes that SoFi's “expanded product flywheel is working effectively.”

After applying for a loan, customers often open products such as checking accounts, savings accounts, investment accounts, and insurance. This multi-product bundling strategy not only reduces customer acquisition costs, but also increases customer lifetime value.

The research report further stated, “We expect the company's revenue compound annual growth rate (CAGR) to reach 22% from 2026 to 2028, and the adjusted EBITDA compound annual growth rate of 27%. We think the current share price level provides an attractive entry point for long-term investors.”