SoFi Technologies raised to Buy at BofA as student debt relief removes 'major overhang' – Seeking Alpha

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SoFi Technologies (NASDAQ:SOFI) stock advanced 3.2% in early Wednesday afternoon trading after Bank of America Securities analyst Mihir Bhatia upgraded the fintech to Buy from Neutral on the basis of a favorable risk-reward setup as well as a potentially emerging path of catalysts.
Bhatia pointed to a meaningful catalyst path over the next few quarters, as SoFi (SOFI), of which a large portion of its business involves refinancing student loans, benefits from an end to the student loan payment moratorium. Student loan repayments are set to resume in January 2023.
President Joe Biden’s student debt relief plan “removes a major overhang for SOFI and could also provide incremental upside to 2022 estimates,” Bhatia wrote in a note to clients. Morgan Stanley analyst Jeffrey Adelson, meanwhile, contended last month that the end of the moratorium will likely drive a jump in private student loan refi volumes next year.
Furthermore Bhatia cited the company’s “high-profile NFL-aligned marketing investments,” as a key catalyst driver, noting that those moves are enhancing user growth and engagement.
SA contributor Investor Trip said to buy SoFi before the pause on federal student loan repayments gets lifted. The stock is down over 20% in the past month and -61% YTD.
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