Tuesday, Nelnet (NYSE:NNI) shares had its price target increased to $96.00 from $90.00, while its stock rating remained at Hold by TD Cowen. The adjustment follows Nelnet's first-quarter earnings for 2024, which surpassed analyst expectations.
The company reported earnings per share (EPS) of $1.81, excluding derivative marks, compared to the estimated $1.37. The better-than-anticipated results were attributed to various factors including an increase in net interest income, which added $0.12 per share, and higher fee income, contributing an additional $0.15 per share impact, excluding derivative marks.
Additionally, a decrease in operating expenses, which improved earnings by $0.12 per share, also played a significant role in the strong quarterly performance.
In light of these results, TD Cowen has revised its earnings estimates for Nelnet, projecting EPS of $6.00 for both 2024 and 2025. Despite the positive earnings report and the raised price target, the firm has chosen to maintain a Hold rating on Nelnet's shares.
Nelnet's financial performance in the first quarter is indicative of the company's operational success during this period. The adjustments made by TD Cowen reflect the firm's recognition of Nelnet's current valuation and its prospects for the coming years. The new price target of $96.00 offers a revised outlook while the Hold rating suggests a cautious approach to the stock at this time.
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