JPMorgan Picks SoFi Over PayPal, Cites 28% 2026 Revenue Growth
JPMorgan analysts upgraded SoFi Technologies to overweight and downgraded PayPal Holdings to neutral after forecasting SoFi’s revenue to grow 28% in 2026 versus PayPal’s 10%, and citing a 12x forward EV/EBITDA multiple for SoFi against PayPal’s 18x. They highlighted SoFi’s expanding digital lending segment and 15% member growth year-over-year.
1. JPMorgan’s Rating Changes
Analysts shifted SoFi Technologies from neutral to overweight and moved PayPal Holdings from overweight to neutral, reflecting a realignment of their fintech coverage. The updated ratings come with revised price targets that assume stronger operating leverage for SoFi and more modest growth for PayPal.
2. Growth and Valuation Comparison
JPMorgan projects SoFi’s top line to expand 28% in 2026 driven by digital lending and membership gains, compared with a 10% revenue increase forecast for PayPal. The report notes SoFi’s forward EV/EBITDA multiple of 12x versus PayPal’s 18x, underscoring the relative valuation discount and upside potential.