SLM - JPMorgan upgrades SLM as credit delinquencies likely peaked stock gains over 3%

2023-04-17 12:00:21 ET

• SLM ( NASDAQ: SLM ) gained as much as 3.6% on Monday after JPMorgan upgraded the stock to Overweight from Neutral, as data quality metrics indicate credit stabilization, reducing uncertainty and potentially signaling fundamental inflection.
• "Our rating reflects our view that credit delinquencies may have reached a peak and private student lending should remain insulated from policy changes," said analyst Richard Shane.
• "Elevated demand from students returning to campus is a tailwind to originations, and many of the mitigating factors we cited last year are reversing in 2023 (dwindling family savings, lower 529 assets from equity market weakness, and deteriorating consumer balance sheets)," he added.
• JPMorgan raised its price target on SLM ( SLM ) to $17 from $16, implying 18.7% potential upside to its last close. The PT is based on a 5.75x forward multiple of 2024 core EPS estimate of $2.95.
• The research firm's stance is in line with bullish sell-side ratings , but contrasts SA Quant's Hold rating .
• Earlier, SLM was upgraded to Buy at Compass Point on stock buyback prospects.

For further details see: