J.P. Morgan Upgrades SoFi to Buy on 40% Revenue Growth
On February 9, 2026, J.P. Morgan upgraded SoFi Technologies (SOFI) to 'Overweight' (Buy), setting a $31 price target that implies a potential 49% upside from its current price of $20.86. Analyst Reginald Smith cited the company's "undeniable momentum" as a key driver for the positive outlook. The bank's confidence is backed by SoFi's strong fourth-quarter 2025 performance, where it posted $1.025 billion in revenue—a 40% year-over-year increase that surpassed analyst expectations by over $30 million. Adjusted earnings per share also came in at $0.13, beating consensus by two cents.
The upgrade comes even as SoFi's shares declined 10% following its earnings call, a move J.P. Morgan views as an attractive entry point. SoFi's user growth remains robust, with its total membership climbing 35% from the prior year to 13.7 million. Smith noted that SoFi continues to add members and deposits at a record pace while other fintechs report outflows, justifying a premium valuation for the online-only bank.
PayPal Held at Neutral as Payment Transactions Slip 4%
In the same analysis, J.P. Morgan maintained a 'Neutral' (Hold) rating for PayPal (PYPL), assigning it a $46 price target for a more modest 14% potential gain. Analyst Tien-tsin Huang pointed to intensifying competition from deep-pocketed rivals like Apple and Google, which has softened PayPal's growth momentum. The caution is rooted in weakening user metrics, including a 4% decline in total payment transactions and a 5% drop in transactions per active account during fiscal 2025.
PayPal's challenges were evident in its fourth-quarter 2025 results, which saw its stock fall 24%. The company's quarterly revenue of $8.7 billion missed forecasts by $111.5 million, and its non-GAAP EPS of $1.23 also fell short of expectations. According to Huang, ongoing investments to drive user habituation are pushing out the company's "growth reinflection story," warranting a more cautious stance despite PayPal's strong brand and global scale.
