$SoFi Technologies (SOFI.US)$ After reading the evaluation r...

After reading the evaluation report on $SOFI by Jeffrey Adelson and others at Morgan Stanley, the following points were highlighted.

1. Growth indicators are not reflected in the evaluation.
The upward revision of the target price is due to additional evaluation of the Loan Platform Business (LPB), but it is concluded that it is overvalued compared to other financial companies without considering the growth rate.

2. Differences in growth rates with other companies.
The average growth rate of other companies highlighted in the report over the past 3 years (GAAP earnings basis) is -8.2%. In contrast, SoFi's 3-year Compound Annual Growth Rate (CAGR) is 43%. Ignoring this difference in evaluation is considered an issue.

3. Unrealistically low growth forecast.
The EPS forecast for 2026 is $0.41, significantly below SoFi's management's indicated range of $0.55 to $0.80. Additionally, the estimated revenue growth rate for the next 2 years at 18% is also considered too low.

4. Undervaluation of innovation and growth.
Analysts are underestimating the innovation, addition of new businesses, and the growth due to the increase in memberships at SoFi, claiming they missed the trend of the stock price rising from $7 to $15. They predict that there is a possibility of missing out on further growth beyond $15, up to over $20, for the same reasons.

5. Incorrect comparison with traditional companies.
SoFi is fundamentally different from traditional companies in the same sector, but Wall Street does not understand this difference. This point is similar to the issue that $TSLA once faced, and it is argued that such misunderstandings lead to unique investment advantages (alpha).

The evaluation of SoFi is being hindered by Wall Street's preconceptions, which is obstructing the fair assessment of growth and innovation.