John Hecht, an analyst from Jefferies, maintained the Buy rating on SLM. The associated price target is $40.00.
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John Hecht has given his Buy rating due to a combination of factors that highlight SLM’s strong market position and growth potential. The company’s ability to capitalize on opportunities arising from the privatization of the Grad Plus program is a significant factor, as SLM’s established presence and brand recognition in the student loan market position it well to benefit from these changes. Additionally, the recent legislative reforms, such as the One Big Beautiful Bill, are expected to expand the total addressable market for SLM, further enhancing its growth prospects.
Despite some anticipated margin compression due to balance sheet repricing, SLM is expected to experience robust loan growth, with a projected year-over-year increase. The company’s core earnings per share forecast slightly surpasses the Street’s expectations, indicating a strong financial outlook. While there are concerns about potential increases in net charge-offs and delinquencies, SLM’s strategic positioning and the expected growth in private education loan originations contribute to the positive outlook and justify the Buy rating.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SLM in relation to earlier this year.