Analyst Jeffrey Adelson of Morgan Stanley maintained a Buy rating on SLM, reducing the price target to $36.00.
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Jeffrey Adelson has given his Buy rating due to a combination of factors that suggest a positive outlook for SLM. Despite an increase in delinquencies, which rose by 41 basis points year-over-year to 4.01%, the situation is not as severe as initially feared. The company’s performance in terms of net charge-offs (NCOs) was better than expected, coming in at 1.95%, which is below the anticipated 2% mark.
Additionally, SLM’s upcoming private credit partnership is expected to enhance cash flow stability and long-term economic retention, with more details to be revealed at the Investor Forum in December 2025. The EPS guidance for 2025 has been revised upward by 20 cents, mainly due to technical factors related to the pending partnership. These elements combined indicate a stable financial outlook for SLM, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $35.00 price target.