Analysts trim SoFi price targets on valuation concerns despite strong growth
SoFi Technologies reported robust year-on-year earnings growth, yet Wall Street analysts are tempering enthusiasm over valuation and weaker outlooks for its technology platform segment.
SoFi Technologies, Inc. (NASDAQ: SOFI) has seen its share price targets reduced by two major US analysts in May 2026, reflecting growing caution over the financial services provider’s valuation despite a strong first-quarter performance. The revisions highlight a divergence between the company’s historical growth metrics and near-term revenue expectations.
On 12 May, Truist analyst Matthew Coad lowered his price target for SoFi to $17 from $20, maintaining a Hold rating. Coad cited lower second-quarter revenue estimates and weaker expectations for the company’s technology platform segment as the primary drivers for the downgrade. The adjustment follows a broader reassessment of sales assumptions for the remainder of the year.
Prior to the Truist update, Mizuho analyst Dan Dolev had also cut his price target, reducing it to $29 from $38 while maintaining an Outperform rating. Dolev described the company’s first-quarter report as solid, noting that member growth remained robust. However, the firm reduced its estimates for both the current and following year, indicating a more conservative outlook for future earnings potential.
SoFi reported impressive year-on-year growth in its latest quarterly results, with revenue increasing by 42.50% and earnings surging by 134.40%. The California-based provider, which operates through Lending, Technology Platform, and Financial Services segments, is currently one of the most traded US stocks in 2026. Founded in 2011, the firm has seen significant trading volume, yet analysts argue the current share price does not align with the reduced growth trajectory.
The market consensus remains split, with 31% of analysts recommending a Buy, 50% holding a Neutral stance, and 19% bearish. A key factor weighing on sentiment is the company’s trailing twelve-month price-to-earnings ratio of 34.86. Analysts consider this multiple overvalued given the softer forecasts and the competitive landscape in the fintech sector.
