SLM upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Richard Shane upgraded SLM to Overweight from Neutral with a price target of $17, up from $16. The analyst believes consumer finance stocks are "approaching an inflection point" with the Federal Reserve’s rate hike cycle coming to an end sooner than previously anticipated. Consumer finance names remain relatively well insulated compared to regional banks given retail rather than commercial deposit taking, relatively low uninsured deposits, and minimal commercial real estate exposure, the analyst tells investors in a research note. The firm upgrades SLM saying the company’s delinquency metrics are beginning to indicate credit stabilization, reducing uncertainty and potentially signaling a "fundamental inflection."