SLM price target raised to $40 from $37 at Morgan Stanley

Morgan Stanley raised the firm’s price target on SLM (SLM) to $40 from $37 and keeps an Overweight rating on the shares. The firm upgraded its view on the North America consumer finance group to In-Line from Cautious. Interest rates are moving lower and the group’s near-term credit performance keeps improving, even amid slower hiring, which lessens downside risks for the stocks, the analyst tells investors in a research note. Morgan Stanley upped price targets in the sector as it rolled forward models to 2027.