Mihir Bhatia, an analyst from Bank of America Securities, reiterated the Sell rating on Navient. The associated price target is $11.00.
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Mihir Bhatia has given his Sell rating due to a combination of factors surrounding Navient’s current financial outlook and strategic plans. Despite Navient’s optimistic projections for its Earnest business, which includes a significant expansion in personal loans, Bhatia remains cautious about the company’s near-term fundamentals. The strategic update highlighted ambitious growth targets, but the challenges in achieving these goals appear to outweigh the potential benefits in the short term.
Additionally, while Navient is focusing on monetizing its existing customer base and expanding its product offerings, the financial metrics and market conditions suggest a less favorable outlook. The company’s current stock price exceeds the price objective set by Bhatia, indicating a potential overvaluation. These concerns, coupled with the company’s historical spending on customer acquisition and the uncertainties in scaling new products, contribute to the Sell rating recommendation.
In another report released on November 17, TD Cowen also maintained a Sell rating on the stock with a $11.00 price target.