SoFi Gets A Price Target Cut From Barclays Ahead Of Q1 Earnings As Macro Pressures Weigh On Fintech Valuations

• Barclays said a murky economic outlook has dragged valuations in the sector beneath their historical levels.
• However, the firm indicated stronger conviction in companies it rates ‘Overweight’.
• Analysts expect a first-quarter revenue of $1.05 billion and earnings per share of $0.12.

SoFi Technologies Inc. (SOFI) is facing a more cautious outlook from Barclays as analysts reassess valuations across the consumer finance sector ahead of upcoming first-quarter earnings reports.

Barclays has trimmed its price target to $18 from a previous $28 while maintaining an ‘Equal Weight’ rating, according to TheFly. The new price target implies a potential 20% upside to the stock’s closing price on Friday. 

Macro Pressures Weigh On Valuations

According to Barclays, uncertainty in the economic backdrop has pushed sector valuations below their long-term averages. Concerns around interest rates, consumer spending resilience, and credit quality have contributed to a more conservative stance among analysts covering fintech and lending platforms.

Even as it lowered its price target, Barclays noted that certain names still offer attractive risk-reward profiles. The firm indicated stronger conviction in companies it rates ‘Overweight’.

SoFi Technologies’ stock traded over 1% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volume levels. 

SoFi Technologies’ New Always-On Banking Platform

On Thursday, SoFi said it is expanding deeper into digital finance with the rollout of a new 24/7 banking platform that merges traditional currency services with cryptocurrency capabilities, signaling a broader push to serve businesses operating in real-time global markets.

The company unveiled its “Big Business Banking” initiative, designed to allow corporate clients to manage deposits, transfer funds, and complete transactions across both fiat currencies and digital assets, including its proprietary stablecoin SoFiUSD. 

The latest move follows SoFi’s milestone achievement last year, when it became the first nationally chartered bank to enable in-app cryptocurrency trading for consumers. The company is scheduled to report its first-quarter earnings on April 29. 

Analysts expect a revenue of $1.05 billion and earnings per share (EPS) of $0.12, according to Fiscal AI data. 

SOFI stock has declined by over 39% year-to-date.  

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