SLM, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Moshe Orenbuch from TD Cowen reiterated a Buy rating on the stock and has a $35.00 price target.
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Moshe Orenbuch has given his Buy rating due to a combination of factors that highlight both stronger current performance and improved forward visibility. He notes that SLM’s latest quarterly earnings significantly exceeded both his estimate and the Street’s, largely because credit costs came in lower than expected. Management’s updated credit guidance, including a modest improvement in projected net charge-offs and clear evidence that fewer early delinquencies are rolling into actual losses, supports a more favorable view of the company’s risk profile. Additionally, portfolio performance on balance sheet has been outperforming trust data, reinforcing confidence in underlying asset quality.
Orenbuch also emphasizes that SLM’s decision to moderate balance-sheet growth in favor of more aggressive loan sales is a strategic positive. The expanded loan sale program, particularly to KKR, is expected to generate attractive gains on sale and recurring management fees, and SLM has already demonstrated this economics with a sizeable, profitable transaction in the quarter. He incorporates robust loan sale volumes into his forward model and highlights that management’s guidance for high-teens to low-20s EPS growth in 2027 is well above current consensus expectations. With earnings estimates moving higher and room for the Street to revise 2027 forecasts upward, he maintains a $35 price target and reiterates his Buy recommendation.
In another report released today, Barclays also maintained a Buy rating on the stock with a $35.00 price target.