SLM downgraded to Market Perform after rally at Keefe Bruyette

Keefe Bruyette analyst Sanjay Sakhrani downgraded SLM (SLM) to Market Perform from Outperform with a price target of $30, up from $27. The firm thinks there is limited upside potential from current levels with the stock up 43% year-to-date. SLM’s higher stock price makes the accretion math tougher around selling student loans at a premium and buying back stock, the analyst tells investors in a research note. The firm says that while a lower rate environment should benefit the company’s gain on sale margins, the level of benefit could be offset by a higher level of consolidation activity away from SLM.