Mizuho Securities analyst Dan Dolev said that the majority of SOFI's current sales come from mortgage issuance as well as student and personal loans (83% of sales in 2020), and the company is transitioning to a mature, mobility-first new digital bank to provide cash management, trading and brokerage, consulting and crypto services (30-35% of sales by 2025) and services in next-generation issuance processing (25% of sales by 2025).
Analysts say the transformation could accelerate a virtuous cycle of increased user engagement, revenue and earnings growth. The analysis shows that by 2025, SOFI sales will grow at a CAGR of 40%, mainly driven by a COMPOUND annual growth rate of 150% in the financial services business and a COMPOUND annual growth rate of 40%-50% in the Galileo business. This is the third time SINCE SOFI has received a buy rating since its listing through a Special Purpose Acquisition Company (SPAC) in June, and the stock also has a neutral rating from Credit Suisse.
This article originated from the Financial Circle Network
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