While the financial-technology sector hasn't been immune from the broader pressure on software stocks, Citizens JMP analyst Devin Ryan sees an opportunity for investors when it comes to shares of SoFi Technologies.

On Monday, he upgraded SoFi's stock $(SOFI)$ to outperform from perform while setting a price target of $30. He believes that the company has been mistakenly caught up in a recent "risk-off rotation" that has penalized higher-growth names with little regard for fundamentals.

The company's stock has fallen to roughly $21 after having traded at highs of over $30 in late 2025.

So what's the bull case for the stock at current levels?

For one, the fintech company's aim to be a "one-stop shop" platform for a variety of financial services is paying off, Ryan said in a note.

He believes SoFi has a profitable "primary relationship flywheel," whereby it has succeeded in drawing existing members to new products, a strategy that gives the company greater potential to scale its business.

SoFi has also expanded its user base, ending the fourth quarter with membership up 35% from the year before.

"We think the market often misprices transition periods," Ryan wrote, in reference to SoFi's shift from lender to services platform. "SoFi is moving through that transition faster than many models reflect," he added.

Ryan also pointed out that SoFi has expanded its revenue streams beyond core lending. The company reported fee-based revenue of $443 million in the fourth quarter of 2025, up 53% from a year before.

The growth of fee-based revenue sources reduces SoFi's reliance on its balance sheet, he noted. And SoFi's loan-platform business in particular "is explicitly designed to monetize previously rejected demand."

Finally, Ryan said the company has a "right to win" in the cryptocurrency space, given its "large customer funnel" and potential to integrate tokenization across a wide range of offerings, such as loans and investment assets.

In the fourth quarter, SoFi launched a consumer crypto-trading platform and its own stablecoin, known as SoFiUSD, on a public blockchain.

Despite the fact that SoFi's stock has fallen 18% so far this year, Ryan said the company is only "scratching the surface" of its target markets, especially given its potential to incorporate artificial intelligence and tokenization into its offerings.

That said, Ryan believes investors will have to wait to see if adoption of new technologies into SoFi's workflows will translate to earnings.

"The path can be lumpy," he said.