Analyst Moshe Orenbuch from TD Cowen maintained a Buy rating on SLM and keeping the price target at $35.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors tied to SLM’s improving credit performance and favorable trust trends. He notes that while delinquencies increased in December, the rise was milder than what is typically seen seasonally, and when considering the modest decline in trust balances, the underlying performance looks even stronger. Net charge-offs fell more than they usually do at this time of year, supported by better roll rates from late-stage delinquencies into losses and stronger recoveries, especially in newer trusts. Together, these developments indicate that the deterioration seen in mid‑year is receding and that overall trust performance is normalizing in a way that should reduce investor anxiety about credit quality.
Looking ahead, Orenbuch acknowledges that seasonal patterns may push delinquencies higher in January, but he expects this to be followed by a period of gradual improvement through the spring. Despite the likelihood that fourth-quarter charge-offs will be elevated versus the prior quarter, he believes the company should still finish the year in the upper half of its previously communicated loss guidance range. The continued progress in delinquencies and roll rates underpins a more optimistic view of SLM’s credit outlook into early 2026. This constructive trajectory in asset quality and loss performance is a key driver behind his Buy recommendation on the stock.
In another report released on January 12, RBC Capital also maintained a Buy rating on the stock with a $32.00 price target.