Citizens Bank believes the steep decline in technology stocks and undervalued growth opportunities make SoFi Technologies stock look particularly attractive. The bank upgraded the fintech company from a market perform to market outperform rating. Analyst Devin Ryan also has a price target of $30, suggesting the stock could rise 44% from here. SoFi stock is up 40% in the past 12 months, but is down 20% this year. SOFI 1Y Mountain SOFI 1Y Chart Ryan believes SoFi has fallen victim to the broader technology sell-off in recent weeks. But the exit also revealed an opportunity for investors to buy into a business that is compounding at scale, rapidly diversifying its revenue and expanding its product pipeline, he said. “After trading as high as over $30 in late 2025, the stock has returned to $21 and is now down ~20% year-to-date. We believe the market’s recent risk-off rotation has penalized the high-growth/’speculation-adjacent’ narrative (cryptocurrency, software, AI, etc.), even though many macro agents (e.g. local banks) have held up and even rallied in recent weeks,” Ryan wrote. “In short, we believe the stock’s rating has been downgraded, even as the business continues to grow.” Ryan believes SoFi’s risk-reward ratio has improved significantly since its January earnings report, citing its record size metrics, profitability momentum, improved strategic flexibility, and clear growth in earnings power. As a catalyst, the analyst wrote, SoFi is building a durable multi-year compounding business by deepening relationships with key customers, increasing lifetime value, lowering acquisition costs, and driving broader cross-selling. Ryan also praised SoFi’s diversified business mix, which means the company is less reliant on pure balance sheet spread revenue. He also noted that SoFi has several potential growth paths that could significantly boost earnings, but that Wall Street hasn’t fully priced them in yet. “The optionality of poorly modeled innovations is increasing (e.g. blockchain, AI, business banking). We believe the next uptick is likely to come from areas that are only partially modeled,” the analysts wrote.
