SoFi (NASDAQ:SOFI) stock has been on many investors’ radars, with the moratorium on student loan payments slated to be terminated at the end of August. As a provider of many student loads, SoFi’s financial results will likely be significantly boosted by the resumption of payments.
Meanwhile, investment bank Truist set a Street-high price target of $11 on SOFI stock yesterday.
More About the End of the Moratorium
The law that ended the debt ceiling standoff states that the student debt payment suspension will be terminated “[s]ixty days after June 30, 2023,” Also noteworthy is that the legislation prevents additional moratoriums on student loan payments without the authorization of Congress.
Consequently, SoFi and the owners of SOFI stock can rest easy knowing that a suspension will probably not be reimposed anytime soon. That’s because Republicans would likely oppose such a measure, and most controversial bills and amendments require the approval of 60 senators to pass that chamber.
Truist’s Price Target Hike and Another Analyst’s Take
The firm increased its price target on SOFI stock to $11 from $8 while maintaining a “buy” rating.
Truist praised the lender’s ability to increase its deposits and use those funds to make highly profitable loans. Additionally, Truist thinks that the stock is getting a boost from SoFi’s efforts to educate investors about its business, and it predicts that the company will generate a profit in the fourth quarter.
Conversely, another investment bank, Wedbush, downgraded SOFI stock to “underperform” from “neutral” on May 15, saying that its “Capital levels may be overstated” and that the company may have to obtain additional capital this year.
On the date of publication, Larry Ramer did not have (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.
