Shares of SoFi Technologies, Inc. (SOFI) are experiencing a surge on Thursday following the Supreme Court’s decision to block the Biden administration’s student loan relief plan. The court’s rejection of the SAVE (Savings on a Valuable Education) plan, which aimed to provide relief to borrowers with federal student loan debt, has been interpreted as a positive development for SoFi.
The company, a major player in the student loan servicing market, stood to potentially lose significant revenue from interest payments and loan origination fees if the student loan forgiveness or deferment plan had been implemented.
With the Supreme Court’s decision, SoFi’s revenue stream from student loan services remains intact. This positive outlook has contributed to the company’s stock price increase.
Analysts are generally optimistic about SoFi’s future, with an average 1-year price target of $9, representing a potential upside of 10.02%. While there are no bearish recommendations, analysts’ price targets vary based on their individual assumptions. Needham has the most bullish outlook, with a price target of $10, while Keefe, Bruyette & Woods has the most conservative at $7.
As of Thursday’s trading, SoFi Technologies shares are up 9.41% at $8.19, reflecting the market’s positive reaction to the Supreme Court’s decision.
