Nelnet, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Moshe Orenbuch from TD Cowen maintained a Hold rating on the stock and has a $135.00 price target.
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Moshe Orenbuch has given his Hold rating due to a combination of factors influencing Nelnet’s performance. The company’s recent financial results showed a positive earnings surprise, primarily driven by the sale of consumer loans and improved technology income. However, while Nelnet’s education technology segment demonstrated strong growth, the margins experienced a slight decline, indicating potential challenges in maintaining profitability.
Additionally, the partnership with Klarna has resulted in significant loan originations, but the full financial impact is expected to be realized in future quarters. The venture capital investments, although promising, remain relatively small and early-stage, contributing limited immediate value. These mixed signals suggest a balanced outlook, justifying the Hold rating as the company navigates both opportunities and uncertainties.
According to TipRanks, Orenbuch is a top 100 analyst with an average return of 23.1% and a 71.25% success rate. Orenbuch covers the Financial sector, focusing on stocks such as American Express, SLM, and OneMain Holdings.