SLM just upgraded at Wells Fargo, here’s why

Wells Fargo upgraded SLM to Overweight from Equal Weight with a price target of $20, up from $14. The analyst believes SLM shares are poised to garner more attention and a higher valuation from investors given the company’s “enhanced competitive positioning” with Discover Financials’ exit, clarity on future loan sales and better credit. The SLM story has attractive elements including its dominant position in private student lending and a powerful loan sale, stock buy back strategy, the analyst tells investors in a research note.