Here’s Why SOFI Is Climbing for a Second Straight Day

Fintech firm and lender SoFi Technologies (SOFI) is advancing for a second straight day, gaining 5% this morning.

The rally by SOFI stock began after Citi yesterday raised its price target on the shares by a large amount.

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Citi’s Price Target Hike

The bank increased its price target on SOFI stock to $18 from $12.50 while keeping a Buy rating on the name.

With fintech names rising since the U.S. presidential election, investors are becoming steadily more interested in the sector, Citi wrote.

Moreover, partly due to the favorable condition of the U.S. economy and the high likelihood of regulations being reduced in the future, Citi expects fintech stocks to perform better in 2025 than in 2024.

Other factors that may boost the sector this year, according to the bank, are acquisitions and more consistent growth by the companies in the space.

Barclays Raised Its Price Target on SOFI Stock Earlier This Month

On Jan. 6, British bank Barclays increased its price target on SOFI to $16 from $9. However, the bank kept an Equal Weight rating on the name.

Barclays expects financial firms to benefit from rebounding consumer credit metrics and reduced regulatory burdens.

The Recent Price Action of SOFI Stock

In the last month, the shares are flat, but they have jumped 51% in the last three months.

While we acknowledge the potential of SOFI, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOFI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.