SoFi Technologies (SOFI) Set to Gain from New Student Loan Limits

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4 days ago

Key Takeaways:

  • SoFi Technologies poised to gain from new borrowing limits on federal student loans.
  • Analysts predict a mixed outlook with significant potential downsides.
  • Current market conditions may offer strategic opportunities for investors.

With recent policy changes introducing stricter borrowing limits on federal student loans, SoFi Technologies (SOFI, Financial) stands to benefit from a projected surge in demand for private student loans. Strategically positioned to expand its graduate-level lending, the company could capture significant market share as government-backed options become more limited.

Wall Street Analysts Forecast

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According to 16 analysts offering a one-year price target for SoFi Technologies Inc (SOFI, Financial), the average target price is $15.75. The high estimate stands at $21.00, while the low estimate is $6.00. This average target implies a notable downside of 25.70% from the current price of $21.20. Investors can find more detailed estimates on the SoFi Technologies Inc (SOFI) Forecast page.

Brokerage firms have provided a consensus recommendation, with SoFi Technologies Inc's (SOFI, Financial) average brokerage recommendation rating at 2.8, signifying a "Hold" status. The rating scale ranges from 1 to 5, where 1 is a Strong Buy and 5 is a Sell, indicating a cautious market sentiment.

According to GuruFocus estimates, the estimated GF Value for SoFi Technologies Inc (SOFI, Financial) in one year is projected at $11.50. This suggests a significant downside of 45.75% from the current price of $21.20. The GF Value represents GuruFocus' assessment of the fair value at which the stock should trade, calculated using historical valuations, past business growth, and future business performance estimates. For a deeper dive into the data, visit the SoFi Technologies Inc (SOFI) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.