In a report released today, Moshe Orenbuch from TD Cowen maintained a Hold rating on SoFi, with a price target of $25.00.
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Moshe Orenbuch has given his Hold rating due to a combination of factors influencing SoFi’s financial performance. The company demonstrated strong growth in its Loan Platform Business (LPB) and net interest income, which contributed to an earnings beat and an upward revision of earnings per share (EPS) estimates. However, these positive aspects were partially offset by increased operating expenses and lower non-interest revenue in the lending segment.
Despite the positive quarterly results and raised guidance, Orenbuch remains cautious. While SoFi’s management expects continued LPB growth, supported by existing partners increasing their commitments, the company faces challenges such as the need to re-establish a regular flow-sale program for student loans. Additionally, although credit performance has improved, the expansion into non-prime lending introduces potential risks. These mixed factors justify the Hold rating, balancing optimism about growth with caution regarding potential risks.
According to TipRanks, Orenbuch is a top 100 analyst with an average return of 23.0% and a 69.79% success rate. Orenbuch covers the Financial sector, focusing on stocks such as American Express, SLM, and Bread Financial Holdings.
In another report released on October 24, J.P. Morgan also reiterated a Hold rating on the stock with a $26.00 price target.