Analyst Michael Kaye of Wells Fargo reiterated a Buy rating on SLM (SLM – Research Report), boosting the price target to $38.00.
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Michael Kaye has given his Buy rating due to a combination of factors that highlight SLM’s strong position and potential for growth. The company’s fundamentals are robust, and it has shown a strong start to 2025, which is a positive indicator for future performance. Additionally, there is potential upside from federal student loan reform, which could benefit private student lenders like SLM by restructuring the current loan system.
Moreover, SLM is well-prepared to handle the expected increase in loan volume due to its strong platform and internal preparations. The proposed legislation, which includes changes such as the elimination of the Grad PLUS loans and tighter borrowing caps, is seen as favorable for the company. These factors, along with improved comparative valuations, have led to an increased price target of $38, reinforcing the Buy rating.
In another report released on April 29, TD Cowen also maintained a Buy rating on the stock with a $34.00 price target.