Since reaching the bottom in early summer, the shares of SoFi Technologies (NASDAQ:SOFI) performed excellently with an increase of 77%. Despite this strong performance, the stock is only up 12% year-to-date, underscoring the overall mixed sentiment towards the neo-bank in 2024.

However, Citi analyst Andrew Schmidt is firmly on the side of the bulls. Schmidt isn’t entirely surprised by SoFi’s recent gains and sees the stock’s upward trend as a natural response to the company’s strengths.

“We believe the stock’s recent momentum is justified on the back of an improving setup for 2025, particularly given the upside potential as refinance/debit consolidation trends improve,” Schmidt opined.

But with the company set to report third-quarter results on Tuesday (October 29), will investors see continued upside, or could the stock face challenges again?

That remains to be seen, of course, but ahead of the release, Schmidt strikes a generally positive tone, anticipating that the numbers will “reflect another solid quarter for SoFi, and we’re slightly ahead of consensus overall.”

For the second half of 2024, Schmidt expects continued GAAP profitability and a gradual increase in total loan sales. Although the analyst has slightly reduced his future forecasts due to the change in interest rate expectations, Schmidt believes that SoFi can continue to gain market share and maintain deposit growth. “In addition,” he continues, “we believe the steady cross-buy success should also continue, leading to increased originations and financial products over time.”

Schmidt also believes SoFi’s $2 billion lending platform deal with Fortress, which provides origination fee revenue for loans directed to lending partners, provides a “potentially lucrative off-balance opportunity.” However, Schmidt also notes that he would like to know more about the profit-sharing terms in the agreement and which party retains ownership of the customer relationship.

Bottom line, Schmidt rates SoFi stock a Buy while increasing his price target from $11 to $12.5, suggesting the stock will rise about 12% in the coming months. (To view Schmidt’s track record, click here)

The rest of the Street, however, is less sanguine; Based on 4 buys, 6 holds, and 3 sells, SOFI stock has a consensus rating of “Hold.” Additionally, recent gains have pushed the stock beyond what most consider its fair value; At $8.63, this value represents a potential decline of ~23% over the next 12 months. (See SoFi stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is for informational purposes only. It is very important to do your own analysis before investing.