SLM - SLM upgraded to Buy at Compass Point on share buyback prospects

2023-04-14 11:53:45 ET

• SLM ( NASDAQ: SLM ) stock drifted up 2% in Friday late morning trading after Compass Point upgraded the student loan-related stock to Buy from Neutral on expectations that the company is poised to boost the pace of stock buybacks in the near-term.
• "We believe this is a positive in the near-term that could support SLM shares," which were down 15.1% year-to-date, analyst Giuliano Bologna wrote in a note to clients.
• Also, the company is expected to complete loan sales by Q3, Bologna said, while noting "the company historically significantly stepped up the pace of share repurchase after loan sales were completed."
• The Buy rating diverges from the Quant system's Hold rating and aligns with the average Wall Street analyst rating of Buy.
• Last week, (April 5) Morgan Stanley double upgraded SLM to Overweight, arguing it's "mispriced for recent improvement in credit."

For further details see: