TD Cowen analyst Moshe Orenbuch has maintained their bullish stance on SLM stock, giving a Buy rating today.
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Moshe Orenbuch’s rating is based on several positive indicators observed in SLM’s recent performance data. The company has shown a consistent improvement in early-stage delinquencies for three consecutive months, which is a positive sign, especially given the sharp increase observed in July. This improvement exceeded typical seasonal expectations, suggesting that the July spike was likely a seasonal anomaly rather than a sign of a worsening trend.
Additionally, while net charge-offs (NCOs) have increased due to the earlier spike in delinquencies, this was anticipated and is expected to stabilize and decline in the coming months. The increase in NCOs was partly due to the typical seasoning pattern of new trust issuances, which is consistent with past trends. With delinquencies improving, the expectation is that the NCO rate will level off, providing a more stable outlook for the company. These factors combined contribute to Moshe Orenbuch’s Buy rating for SLM.
Orenbuch covers the Financial sector, focusing on stocks such as SLM, OneMain Holdings, and Bread Financial Holdings. According to TipRanks, Orenbuch has an average return of 23.5% and a 71.19% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $35.00 price target.