Wealthfront Corp (WLTH) is catching Goldman Sachs' attention for all the right reasons. The digital wealth advisory platform offers what analyst James Yaro calls "compelling structural growth" potential, driven by products that make managing money cheaper, easier, and frankly, smarter than traditional alternatives.

Yaro initiated coverage with a Neutral rating and set a $14.50 price target, but the numbers tell an optimistic story. He's projecting a 15% compounded annual growth rate in assets under management, which could translate into revenue growing at 19% annually and earnings climbing 14% per year through 2028.

Three Growth Engines Worth Watching

The analyst highlighted three demographic tailwinds powering Wealthfront's expansion. First up is the company's automated tax-loss harvesting product, which keeps after-tax management fees "extremely low" for clients. Then there's the cash management business, which has gained serious traction as customers chase higher yields on their cash holdings.

But the real sleeper hit might be mortgages. Wealthfront's mortgage origination product offers lower costs, faster processing, and a better user experience than competitors. Yaro expects this business to explode from essentially zero today to capturing more than 50% of clients' mortgage demand by fiscal 2028, contributing roughly 15% of total revenue.

Wealthfront shares slipped 1.17% to $13.49 on Tuesday.