SLM price target lowered to $32 from $40 at Deutsche Bank

Deutsche Bank lowered the firm’s price target on SLM (SLM) to $32 from $40 and keeps a Buy rating on the shares after meetings with management. Contrary to market concerns about AI risk, SLM continues to see no signs that recent grads are performing worse than recent prior classes or worse than expectations, the analyst tells investors in a research note. Deutsche found the meetings supportive of the long-term bull case for SLM. The company’s growth should accelerate as credit gradually improves and earnings volatility declines, the firm contends. The analyst, however, believes AI risk overhang could persist for some time.