JPMorgan analyst Richard Shane downgraded SLM (SLM) to Neutral from Overweight with a price target of $29, down from $38, as part of a Q3 earnings preview. The firm remains bullish on the company’s long-term earnings potential but acknowledges its upgrade in July was too early given potential credit headwinds. SLM faces pressure from the resumption of student loan repayments and a challenging job market for new graduates, the analyst tells investors in a research note. As such, JPMorgan views the stock’s risk/reward as balanced.
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