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Investing.com – SoFi Technologies stock (NASDAQ:SOFI) soared 11% to hit $18.03 in Monday’s trading after Morgan Stanley (NYSE:MS) said it sees the stock at $25.
The brokerage said SoFi has positioned itself well to capitalize on the emergence of the new Gen Y and Z finance trends.
According to analyst Betsy Graseck, the company is helping its consumers solve their cash flow problems and that’s winning it loyalty, particularly with the HENRY (High Earner Not Rich Yet) customer.
The analyst says the lending-first model generates customer leads for SoFi’s other services. Graseck says SoFi’s customers have been ramping their cross buy, and now account for 24% of its total products.
SoFi’s customer base could double in two years to 5.3 million, as per Graseck, after more than doubling over the past year.
The fintech company had posted a wider-than-expected second-quarter loss. It reiterated its 2021 outlook though, forecasting adjusted net revenue of $980 million and adjusted earnings before interest, taxes, depreciation and amortization of $27 million.
Six-months revenue stood at $453.25 million.
