TD Cowen analyst Moshe Orenbuch has maintained their bullish stance on SLM stock, giving a Buy rating yesterday.
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Moshe Orenbuch has given his Buy rating due to a combination of factors including the improvement in early-stage delinquencies for SLM, which showed a significant decline in September compared to historical trends. This decline supports the management’s assertion that the elevated delinquencies observed in July and August were primarily due to seasonal factors rather than a structural issue, alleviating investor concerns about a potential new trend.
Additionally, the roll rate to net charge-offs (NCO) remains better than historical averages, providing further confidence in the company’s financial stability. Although late-stage delinquencies increased, the overall performance of early-stage delinquencies as a percentage of the securitized portfolio improved, reinforcing the seasonal thesis. This positive trend in early-stage delinquencies is expected to continue, contributing to the optimistic outlook for SLM’s stock.
Orenbuch covers the Financial sector, focusing on stocks such as American Express, SLM, and Synchrony Financial. According to TipRanks, Orenbuch has an average return of 23.5% and a 70.44% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $35.00 price target.