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SLM downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded SLM (SLM) to Underweight from Neutral with a price target of $25, down from $29. The firm adjusted consumer finance ratings as part of its Q4 preview. SLM faces elevated cyclical credit risk as college graduates face a tougher job market, the analyst tells investors in a research note. The firm believes the company’s believe business model faces structural challenges, saying the value of a college degree may come into question with increasing AI-driven disruptions.

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