SoFi Technologies Inc (NASDAQ:SOFI) shares are trading lower on Tuesday despite receiving an upgrade from JPMorgan. Here’s what you need to know.
JPMorgan Sees Big Upside
JPMorgan analyst Reginal Smith raised the rating on SoFi to Overweight from Neutral and reiterated a $31 price target on Tuesday, suggesting roughly 40% upside from current levels.
The call comes after the stock slid about 10% following Friday’s fourth‑quarter earnings report in which the company reported record results and issued stronger‑than‑expected full‑year 2026 adjusted EBITDA guidance.
“Momentum in the business is undeniable, as SoFi continues to add new members and deposits at a record pace, while other fintechs report deposit outflows or stagnant member growth,” Smith wrote in the note.
The firm also bumped its earnings estimates, now expecting SoFi to generate 61 cents per share in 2026, up from 56 cents, and 77 cents in 2027, up from 75 cents.
The $31 price target is based on a 1.5x PEG ratio applied to the 2027 EPS estimate, which JPMorgan says is still slightly below SoFi’s trailing‑twelve‑month average.
Strong Guidance, But Near‑Term Remains Murky
SoFi’s full‑year 2026 outlook calls for 30% revenue growth and 34% adjusted EBITDA margins, signaling faster growth than in 2025 and more than 50% incremental margins. Management is also hoping to add 4 million new members in 2026, up from 3.5 million expected in 2025.
However, first‑quarter 2026 guidance came in a bit light compared to Street expectations. It points to incremental adjusted EBITDA margins in the low 30% range and suggests a heavier second‑half ramp as the company continues to invest aggressively in marketing and product development early in the year.
Even so, Smith noted that SoFi has a strong track record of outperforming its own forecasts, pointing out that the company beat Street adjusted EBITDA estimates by 18% in both the first quarter of 2025 and the first quarter of 2024.
SOFI Price Action: SoFi shares were down 3.58% at $21.29 at the time of publication on Tuesday, according to Benzinga Pro.
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