Moshe Orenbuch, an analyst from TD Cowen, maintained the Buy rating on SLM. The associated price target remains the same with $35.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors tied to improving credit performance in SLM’s trust data and a better labor backdrop for recent graduates. February figures showed both delinquencies and net charge-offs coming in below what is typically seen for that month, with charge-offs notably better than seasonal patterns because fewer loans rolled from late-stage delinquency into loss.
He also points to early-stage delinquencies easing and the trend in college graduate unemployment improving, which together suggest that credit pressure is stabilizing rather than worsening. Assuming current roll-rate dynamics persist, he anticipates incremental improvement in future net charge-offs, supporting a more constructive outlook on SLM’s risk profile and earnings power, and underpinning his Buy recommendation.
In another report released on March 10, TipRanks – Google also upgraded the stock to a Buy with a $22.00 price target.