Citizens has reiterated a Market Perform rating on SoFi Technologies (NASDAQ:SOFI), emphasizing the fintech company’s advantages in attracting customers and its potential for continued innovation. At the time of the note, SoFi was trading at $22.81, having fallen 11.59% over the prior week but still showing a 44.55% gain over the past 12 months.
According to InvestingPro analysis cited by the research note, SoFi is trading above its Fair Value and carries a relatively high price-to-earnings multiple of 59.15. Citizens framed that valuation in the context of market sentiment, arguing that skeptics have persistently overweighted perceived risks while underestimating the strength of SoFi’s acquisition funnel and its structural unit economic benefits compared with incumbent financial institutions.
The firm pointed to several performance metrics to support its view. SoFi reported 35.56% revenue growth and has recently turned profitable on a diluted earnings-per-share basis, recording diluted earnings of $0.39 per share. Citizens highlighted that these elements are central to SoFi’s capacity to capture market share, and that the company’s advantages are likely to become "more powerful at scale and with new products."
Citizens also expects SoFi to be among the most innovative financial services companies in coming years. The note asserted the company has the potential to win within existing financial categories by delivering greater value and improved customer experiences. Citizens called attention to SoFi’s expansion into incremental markets that enlarge its total addressable market, specifically mentioning digital assets and tokenization as areas that could generate additional business and revenue streams.
Recent earnings and market reaction
In related developments, SoFi reported Q4 2025 results that exceeded analysts’ expectations. The company posted earnings per share of $0.13 versus an anticipated $0.11, representing an 18.18% surprise. Revenue for the quarter came in at $1.03 billion compared with forecasted revenue of $973.43 million, a 5.81% surprise to the upside.
Despite the better-than-expected results, SoFi shares fell by approximately 4% following the report. Separately, Mizuho retained an Outperform rating on the stock and set a price target of $38.00, urging investors to buy amid the pullback. The Mizuho note described SoFi’s quarterly performance as "outstanding" and pointed to positive guidance for 2026 and a favorable medium-term outlook.
Context for investors
The juxtaposition of strong operational results and short-term share price weakness underscores a familiar dynamic: near-term market reactions can diverge from analyst assessments that focus on adoption trends, unit economics, and future product-led expansion. Citizens’ continued Market Perform assessment is grounded in its view that SoFi’s customer economics and innovation roadmap are the core drivers of long-term opportunity, even as valuation metrics suggest the stock trades above intrinsic measures used by some platforms.
Implications for markets and sectors
- The fintech sector is central to the analysis given SoFi’s competitive positioning and product expansion.
- Public markets and equity valuation frameworks are implicated by the stock trading above Fair Value with a high P/E.
- Digital assets and tokenization markets are noted as incremental opportunity areas that could affect SoFi’s total addressable market.
Investors assessing SoFi should weigh the company’s recent profitability, revenue growth, and strategic expansion against prevailing valuation levels and market sentiment. Citizens’ note and Mizuho’s Outperform stance together reflect differing analytical perspectives on how current fundamentals map to future upside.