SoFi Technologies Stock Drops as Analysts Reassess Price Targets

SoFi Technologies stock (NASDAQ: SOFI) is falling fast today, down 9.1% to $26.62, a sharp reversal following a positive start to 2026 as analysts adjust their outlook on the fintech company.

Barclays analyst Terry Ma increased the firm's price target for SoFi Technologies from $23 to $28, maintaining an “Equal Weight” rating. This optimistic view is underpinned by expectations of a favorable credit environment, which should encourage loan growth. Barclays also anticipates improvements in the mortgage origination market in 2026, further supporting their positive outlook. These adjustments are part of Barclays' broader 2026 outlook, signaling a cautiously optimistic stance on select consumer finance stocks.

Conversely, Bank of America (BofA) resumed coverage of SoFi Technologies with an “Underperform” rating and a price target of $20.50. BofA's analysis highlights SoFi's recent capital raises, including a $1.7 billion equity offering in Q3 2025 and a subsequent $1.5 billion issuance of 54.5 million shares in December. While acknowledging that these capital infusions provide resources for continued growth, BofA expressed concerns about the stock's current valuation, suggesting limited upside potential at its present multiple.

Adding to the mixed sentiment, Goldman Sachs analyst Michael Ng reduced the firm's price target on SoFi Technologies from $27 to $24, while maintaining a “Neutral” rating. This adjustment reflects a more cautious outlook on the company's valuation and growth trajectory, indicating that while SoFi has potential, its current stock price may already account for much of this anticipated growth.

The disparate analyst opinions and the subsequent market reaction underscore the complexities of valuing growth stocks in the fintech sector. SoFi's ability to leverage recent capital raises to fuel profitable expansion will be critical in determining its future performance. The company's performance in the mortgage and personal loan sectors will also be closely watched, particularly given the varying forecasts for these markets.

Price Targets

The collective impact of these analyst revisions has clearly contributed to the day's notable decline in SoFi's stock price. Markets are digesting the mixed signals, weighing optimism from Barclays against the caution expressed by BofA and Goldman Sachs. The near-term direction of SoFi's stock will likely depend on the company's ability to demonstrate sustainable growth and profitability, thereby justifying its current valuation after a 75% gain over the past 12 months.