SLM’s Resilient Loan Portfolio and Decreasing Charge-Offs Justify Buy Rating

TD Cowen analyst Moshe Orenbuch has maintained their bullish stance on SLM stock, giving a Buy rating on March 9.

Moshe Orenbuch has given his Buy rating due to a combination of factors including the performance of SLM’s loan portfolio and trust data. Despite a slight increase in delinquencies in February, which were marginally higher than the expected seasonal trend, the overall portfolio is performing better than the trust data suggests. This indicates a resilience in the company’s loan management.
Additionally, the net charge-offs (NCOs) on total loans have decreased, showing an improvement compared to both the previous month and year. This positive trend in NCOs, along with the management’s effective handling of loan modifications, supports the Buy rating as it reflects the company’s ability to manage risk and maintain financial stability.

In another report released on March 9, Morgan Stanley also maintained a Buy rating on the stock with a $38.00 price target.