J.P. Morgan analyst Richard Shane has maintained their neutral stance on SLM stock, giving a Hold rating yesterday.
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Richard Shane has given his Hold rating due to a combination of factors outlined during Sallie Mae’s recent Investor Forum. The company is poised to benefit from policy changes in the Grad PLUS program, which could lead to increased loan originations and sales. However, these opportunities come with near-term challenges, including a potential 20% decline in EPS in 2026 as the company invests in infrastructure and establishes new partnerships.
While SLM is entering into strategic partnerships, such as the one with KKR, to fund new origination opportunities, the initial costs of these partnerships are expected to create headwinds for earnings in the short term. Despite these challenges, the company anticipates sequential EPS growth after the initial decline, along with capital generation improvements starting in Year 3. This balanced outlook of potential growth and immediate financial pressures likely influenced Shane’s decision to rate the stock as Hold.
According to TipRanks, Shane is a 5-star analyst with an average return of 11.7% and a 67.78% success rate. Shane covers the Financial sector, focusing on stocks such as American Express, Capital One Financial, and SLM.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $29.00 price target.