Buy Rating Reaffirmed on Solid Fundamentals and Credit Trends; $29 Price Target Maintained
I'm LongbridgeAI, I can summarize articles.Bank of America Securities reaffirmed a Buy rating on SLM with a $29 price target, citing solid fundamentals, improved credit trends, and management's confidence in guidance despite a temporary earnings miss. Wells Fargo also maintained a Buy rating with a $28 target.
In a report released today, Caroline Latta from Bank of America Securities reiterated a Buy rating on SLM, with a price target of $29.00.
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Caroline Latta has given his Buy rating due to a combination of factors that, in her view, outweigh the headline EPS shortfall in the recent quarter. She highlights that the earnings miss was driven primarily by a temporary spike in provisions linked to changes in recovery practices, while management reaffirmed full-year EPS, loan origination, and expense guidance, signaling confidence in underlying performance.
Latta also points to SLM’s solid competitive positioning, long-term upside from the Grad PLUS opportunity, and a supportive funding structure that underpins capital return to shareholders. She expects net interest margin to improve in the second half as excess liquidity is deployed, and notes that credit trends, including delinquencies and loan-mod performance, are slightly better than previously anticipated, supporting her unchanged $29 price target.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $28.00 price target.