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SLM’s Improved Delinquency Rates and Loan Performance Justify Buy Rating

SLM’s Improved Delinquency Rates and Loan Performance Justify Buy Rating

Moshe Orenbuch, an analyst from TD Cowen, maintained the Buy rating on SLM. The associated price target remains the same with $39.00.

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Moshe Orenbuch has given his Buy rating due to a combination of factors related to SLM’s financial performance. The company’s delinquency rates showed a slight improvement in June, with a decrease in late-stage delinquencies contributing to a reduction in overall delinquencies compared to the previous month. While the early-stage delinquencies saw a minor increase, the overall trend was positive as the delinquency rates were better than the historical seasonal performance.
Additionally, the net charge-offs (NCOs) on total loans also improved, showing a decrease from the previous month. The percentage of loans in modification decreased, indicating better loan performance. These positive trends, along with management’s note that the overall portfolio is outperforming the trust, suggest a stable financial outlook for SLM, supporting the Buy rating.

In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $37.00 price target.

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