Wells Fargo initiated coverage of SoFi Technologies with an Equal Weight recommendation and assigned a $19 price target, balancing the company’s strong growth trajectory against valuation and business-model risks. The firm pointed to sustained member expansion and rising product take-rates as supportive of the company’s long-term prospects.
The brokerage noted that SoFi’s membership base has grown at a 43% compound annual rate since 2020. Management targets better than 30% revenue growth and roughly 38% to 42% earnings-per-share expansion through 2028, targets that underpin Wells Fargo’s positive view of the franchise’s growth potential.
Wells Fargo emphasized SoFi’s integrated positioning - a combination of lending, financial services and technology capabilities - and cited the company’s banking license and platform tools as strategic advantages in competing across the consumer finance landscape.
At the same time, the firm flagged material sources of uncertainty. It highlighted SoFi’s loan platform business, in which the company originates personal loans and subsequently sells them to third parties. While these sales have supported recent earnings growth, the brokerage warned that dependence on loan dispositions introduces variability, particularly if credit market conditions deteriorate. Wells Fargo quantified the contribution from loan platform sales, estimating they will add $0.33 and $0.42 to EPS in 2026 and 2027, respectively.
Valuation also factored into the Equal Weight decision. Wells Fargo said SoFi’s hybrid positioning as both a technology platform and a digital bank complicates valuation work, noting the stock is trading nearer to higher-growth fintech peers. The firm also stated that macroeconomic concerns and potential job disruption from advances in artificial intelligence have weighed on investor sentiment.
On the earnings front, Wells Fargo laid out EPS forecasts of $0.62 for 2026, $0.81 for 2027 and $1.04 for 2028. It expects the company’s revenue mix in 2026 to be approximately 45% from lending, 19% from the loan platform business and 11% from the technology segment.
Despite describing SoFi as a potential long-term disrupter in financial services, Wells Fargo concluded that current valuation and the present earnings mix keep it on the sidelines for now.