Benzinga | Jan 19, 2022 11:22AM EST

Why This Analyst Believes SoFi Technologies Will Disrupt Legacy Consumer Finance

SoFi Technologies Inc (NASDAQ:SOFI) has been generating robust growth and appears poised to grow at a 28% compounded annual rate through 2026, according to Wedbush.

The SoFi Technologies Analyst: David Chiaverini initiated coverage of SoFi Technologies with an Outperform rating and a price target of $20.

The SoFi Technologies Thesis: The company's members increased to over 3 million in the fourth quarter of 2021 and revenue growth guidance of nearly $1 billion for FY2021 is strong, Chiaverini said in the note.

He expressed optimism about SoFi Technologies being able to drive member growth with its increasing brand presence.

See Also: Is Sofi Technologies Stock In Trouble?

SoFi offers comprehensive financial services, which "is a significant competitive advantage over neobank competitors who tend to focus on niche offerings," the analyst wrote.

The company's "streamlined product offering makes it well-positioned versus legacy consumer finance providers including traditional banks who are viewed by younger cohorts as being outdated, not fee-friendly, and have friction in the cross-selling process given business segments tend to operate in silos," Chiaverini added.

SOFI Price Action: Shares of SoFi Technologies had risen by 12.27% to $13.54 at the time of publication Wednesday.