Wells Fargo analyst Michael Kaye has reiterated their bullish stance on SLM stock, giving a Buy rating yesterday.
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Michael Kaye has given his Buy rating due to a combination of factors that suggest positive future prospects for SLM. Despite the recent rise in delinquencies and net charge-offs, Kaye sees potential benefits from federal student loan reforms and opportunities for SLM to increase its market share. The company is also actively growing its balance sheet while maintaining a strategy of stock buybacks, which is a positive indicator for investors.
Additionally, Kaye notes that there is progress in normalizing net losses to more favorable levels, which could further enhance the company’s financial stability. These factors, combined with the strategic adjustments SLM is making in response to tighter loan modification criteria, contribute to the optimistic outlook and justify the Buy rating.
Kaye covers the Financial sector, focusing on stocks such as OneMain Holdings, SLM, and PennyMac Financial. According to TipRanks, Kaye has an average return of 32.8% and an 80.00% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $37.00 price target.