Analyst Jeffrey Adelson from Morgan Stanley maintained a Buy rating on SLM and keeping the price target at $36.00.
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Jeffrey Adelson has given his Buy rating due to a combination of factors that highlight SLM’s improving financial metrics. One of the key reasons is the consistent decline in early-stage delinquencies over the past three months, which suggests a positive trend in the company’s credit quality. This improvement is evident across all delinquency buckets, with early and mid-stage delinquencies performing better than expected for the season.
Despite the acceleration in net charge-offs, which are projected to reach the higher end of management’s guidance, the overall delinquency formation is slowing. This indicates a potential stabilization in the company’s financial health. Additionally, the adjustments in earnings per share estimates and net charge-off forecasts reflect a more cautious but optimistic outlook. These factors combined provide a strong basis for Adelson’s Buy rating on SLM’s stock.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $39.00 price target.