Nelnet’s Hold Rating: Impact of Solar Losses and Declining Revenue on Financial Performance

In a report released today, Moshe Orenbuch from TD Cowen maintained a Hold rating on Nelnet, with a price target of $130.00.

Moshe Orenbuch has given his Hold rating due to a combination of factors impacting Nelnet’s financial performance. The company’s earnings per share for the second quarter of 2025 fell short of expectations, primarily because of reduced revenue and increased losses in their solar segment. Although the management is actively looking for ways to mitigate these solar losses, the current impact on earnings remains a concern.
Additionally, while there was an improvement in core loan spreads, the overall net interest income declined due to a decrease in average AGM balances. Fee income also did not meet expectations, largely due to a drop in education technology revenue following the expiration of COVID-era funding programs. Despite some positive developments, such as gains from partial redemption of ALLO, the challenges in revenue and solar losses contribute to the Hold rating, as the outlook remains uncertain.

Orenbuch covers the Financial sector, focusing on stocks such as SLM, Bread Financial Holdings, and American Express. According to TipRanks, Orenbuch has an average return of 23.1% and a 71.70% success rate on recommended stocks.