Analyst Moshe Orenbuch of TD Cowen maintained a Buy rating on SLM, retaining the price target of $40.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors observed in SLM’s August trust data. Despite an increase in delinquencies, the early-stage delinquencies remained stable, and there was an improvement in roll rates, particularly concerning non-performing loans (NCOs). This indicates a positive trend where fewer loans are transitioning from early-stage delinquencies to more severe stages.
Another reason for the Buy rating is the improvement in NCOs, which decreased by 20 basis points month-over-month to 1.81%. This is a better performance compared to historical trends, suggesting that the company’s loan management is improving. Additionally, the percentage of loans in modification slightly decreased, indicating a healthier loan portfolio. These factors combined suggest an optimistic outlook for SLM, justifying the Buy recommendation.
According to TipRanks, Orenbuch is a top 25 analyst with an average return of 24.2% and a 72.54% success rate. Orenbuch covers the Financial sector, focusing on stocks such as SLM, American Express, and Bread Financial Holdings.
In another report released today, Barclays also maintained a Buy rating on the stock with a $43.00 price target.