SLM, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Moshe Orenbuch from TD Cowen maintained 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 tied to SLM’s credit performance and seasonality. January trust delinquencies rose in line with normal seasonal patterns, while net charge-offs actually edged lower and now sit meaningfully below the spike seen in November, suggesting loss trends are stabilizing rather than deteriorating.
Roll rates improved across all delinquency buckets, indicating fewer problem loans are migrating into charge-offs, which supports management’s claims about stronger collection efforts. Looking ahead, historical seasonality and the prospect of larger tax refunds point to a likely decline in delinquencies from February through May, reinforcing confidence that current credit metrics are manageable and creating a favorable backdrop for the stock.