SoFi Technologies (SOFI, Financial) has announced a significant extension of its collaboration with affiliates of Fortress Investment Group, enhancing their Loan Platform Business for personal loans by an additional $2 billion. This development builds upon an initial $2 billion agreement established in October 2024.
Further augmenting this partnership, SoFi has secured a two-year agreement to originate an additional $1.2 billion in loans. This endeavor leverages advanced technology through a joint venture between Fortress and Edge Focus. The cumulative financial backing from Fortress for SoFi's Loan Platform Business has now surpassed $5 billion, according to the company's recent announcement.
SoFi's CEO, Anthony Noto, emphasized that this ongoing partnership with Fortress underscores the robustness and scalability of their Loan Platform Business. The expanded $3.2 billion commitment is expected to enhance SoFi's ability to address borrower demand while strategically transitioning towards less capital-intensive, more fee-driven revenue models. This move marks a step toward strengthening SoFi's position in the lending market for 2025 and beyond.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for SoFi Technologies Inc (SOFI, Financial) is $12.98 with a high estimate of $20.00 and a low estimate of $5.00. The average target implies an upside of 18.32% from the current price of $10.97. More detailed estimate data can be found on the SoFi Technologies Inc (SOFI) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, SoFi Technologies Inc's (SOFI, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SoFi Technologies Inc (SOFI, Financial) in one year is $10.50, suggesting a downside of 4.28% from the current price of $10.97. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SoFi Technologies Inc (SOFI) Summary page.
