Piper Sandler initiates coverage on SoFi Technologies (SOFI.US) with an “Overweight” rating, targeting the millennial credit blue ocean.

According to Golden Ten Data APP, Piper Sandler has initiated coverage on SoFi Technologies (SOFI.US), assigning an equivalent of a "Buy" rating and citing the company’s strong growth momentum. Piper Sandler has given the stock an "Overweight" rating, with a target price set at $22.00.

As of the time of writing, the stock was down slightly by 0.93% in Monday’s after-hours trading session.

Analysts Patrick Moley, Will Copps, and Ben Bogdanski pointed out in their research report that SoFi is a vertically integrated digital financial services company, with business covering lending and a range of personal finance products, including checking accounts, savings accounts, and investment accounts.

The investment bank believes that SoFi offers investors exposure to two differentiated growth drivers: first, the lending and debt consolidation market targeting young, high-credit-quality individuals, with a total addressable market (TAM) that is large and expanding.

The company mainly targets young, high-credit-quality individuals (primarily millennials and Gen Z), providing ample market space in personal loans and debt consolidation. As consumers increasingly focus on debt management in a high interest rate environment, SoFi’s digital-first platform continues to capture market share from traditional banks.

Moley specifically noted that SoFi is poised to meet substantial refinancing demand from high-income, high-credit-quality millennials—including credit card and student loan refinancing, both of which closely align with the debt structure of the company’s target borrowers.

The second driver is the powerful product flywheel effect, which is accelerating both new and existing members’ adoption and penetration of platform products. The report emphasizes, "SoFi’s expanding product flywheel is functioning effectively."

After applying for a loan, customers often subsequently open checking accounts, savings accounts, investment accounts, and insurance products. This multi-product bundling strategy not only lowers customer acquisition costs but also enhances the lifetime value of each client.

The report further states: “We expect the company’s compound annual growth rate (CAGR) in revenue to reach 22% from 2026 to 2028, with an adjusted EBITDA CAGR of 27%. We believe the current price level offers an attractive entry point for long-term investors.”