Stephens maintains Underweight rating on Navient after 2024 EPS guidance miss

Stephens analyst Vincent Caintic notes that Navient’s 2024 EPS guidance of $2.10-$2.30 is 12% below consensus, though that analyst adds that the EPS target is likely to move significantly through 2023 with Navient’s major strategic review underway. The firm, whose initial thoughts on Navient’s strategic review are “mixed,” appreciates the candidness of highlighting problems in Navient’s current operating model and the significant opportunities for improvement, but argues that “execution appears daunting without breakage.” The firm maintains an Underweight rating and $16 price target on Navient shares.