Navient initiated with a Market Perform at TD Cowen

TD Cowen analyst Moshe Orenbuch initiated coverage of Navient with a Market Perform rating and $17 price target. The analyst says well over half of Navient’s net income is driven by the amortizing FFEL and legacy private portfolios, and that its refinance business is likely to remain challenged until interest rates moderate. This makes it difficult to grow earnings, even with a10% buyback, the analyst tells investors in a research note.