SLM downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded SLM to Neutral from Overweight with a price target of $20, up from $18. Entering 2024 the analyst believes investors should adopt a “more defensive positioning” in the consumer finance sector. This is a reversal from the firm’s bullish outlook in 2023 that was predicated on the belief that the market was fully discounting “the most anticipated/predicted economic slowdown in generations.” With multiples having rebounded towards historic norms, JPMorgan believes the risk/reward outlook for the space is less compelling. The firm says SLM’s financial outlook is now fully incorporated into estimates the stock’s valuation.