Compass Point double downgrades SLM to Sell as update signals ‘major reset’

As previously reported, Compass Point double downgraded SLM (SLM) to Sell from Buy with a price target of $23, down from $35, after the company hosted an investor forum to present an updated medium-term outlook that reflects expected growth from the Grad PLUS opportunity and the impact of its recently launched strategic partnership loan-sale program. The forum update “signals a major reset,” says the analyst, who adds that this reset is “a major surprise” given prior expectations for steady EPS improvement from the current FY25 outlook and notes that FY26 EPS is now projected to decline about 19% year-over-year.