SLM, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Moshe Orenbuch from TD Cowen reiterated a Buy rating on the stock and has a $39.00 price target.
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Moshe Orenbuch’s rating is based on several strategic developments at SLM that are expected to enhance the company’s financial performance. SLM’s recent announcement of a multi-year strategic partnership is a key factor, as it introduces a new channel for loan sales that is capital-efficient and generates recurring fee-based revenue. This partnership allows SLM to expand its credit offerings beyond traditional bank criteria, potentially increasing its market reach and origination capacity.
Additionally, the updated guidance for SLM’s earnings per share (EPS) suggests a strong performance in the upcoming quarter, with projections significantly exceeding consensus estimates. The company’s management has expressed confidence in maintaining credit trends, despite seasonal fluctuations in delinquencies. The new partnership structure also provides capital relief and eliminates credit risk on new originations, which could lead to sustainable growth and profitability. These factors collectively support the Buy rating given by Moshe Orenbuch.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $33.00 price target.
Based on the recent corporate insider activity of 63 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.