Analyst Maintains Hold Rating and Keeps $135 Price Target as Near-Term BNPL Headwinds Offset by Stable Long-Term Outlook

Analyst Moshe Orenbuch from TD Cowen maintained a Hold rating on Nelnet and keeping the price target at $135.00.

Moshe Orenbuch has given his Hold rating due to a combination of factors that balance near‑term headwinds with intact long‑term earnings power. First, the company’s adjusted EPS of $2.34 came in below his $2.66 estimate, primarily because of a sizable provision increase tied to the newer BNPL partnership with Klarna, which pressured quarterly results but is not expected to recur at the same scale.

At the same time, he views core credit performance and BNPL unit economics as remaining fundamentally sound, with management still targeting double‑digit returns. Net interest income dynamics are mixed, with spread improvement at AGM offset by margin compression at Nelnet Bank, while management’s disciplined capital deployment strategy—emphasizing buybacks, selective loan growth and potential EdTech acquisitions—supports a steady outlook, justifying a maintained $135 price target and Hold rating rather than a more aggressive stance.