Today, online personal finance company SoFi (NASDAQ:SOFI) is continuing to suffer from extended student loan flexibility. Now, SOFI stock price predictions are flying. This comes after President Joe Biden announced a continued pause on student loan payments yesterday.
What do you need to know about SoFi right now?
Well, the Biden administration extended its student loan moratorium to August 31 on Tuesday. If you recall, former President Donald Trump first halted student loan payments in March 2020 in response to the Covid-19 pandemic. Since then, politicians have hotly debated a future course of action for these loans. Some Democrats argue that student debt should simply be cancelled via a forgiveness program. Others are pushing for resumed payments.
SoFi Adjusts Expectations on Student Loan Announcement
In consideration of the news, SoFi has once again adjusted its revenue expectations for full-year 2022. Now, the company expects to bring in $1.47 billion, reduced from its previous $1.57 billion outlook. Similarly, it expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $100 million. That’s down from the prior $180 million forecast.
Currently, the U.S. bears more than $1.7 trillion in unmet student loans, a number that continues to grow. In the meantime, companies like SoFi have seen their revenue dwindle in the face of the continued moratorium. According to Barron’s, the company’s “student loan refinancing business has operated at less than 50% of pre-Covid levels” over the past two years.
Since November, SoFi has seen its share price shrink month after month. Today, SOFI stock is down 11% on the new announcement.
Let’s see what the experts think about the company’s potential going forward.
SOFI Stock Price Predictions
- Bank of America analyst Mihir Bhatia lowered their SOFI stock price target to $12 per share, down from $14. Bhatia maintains a “neutral” rating on the stock.
- Oppenheimer analyst Dominick Gabriele has followed suit, lowering their target to $13 from $18. That said, Gabriele maintains an “outperform” rating on SoFi.
- Finally, CNN’s panel of 14 polled analysts set a 12-month average price target of $14 on SOFI. The panel was relatively evenly split on the stock; eight analysts call the stock a Buy while six recommend it as a Hold.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
