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UPDATE: Compass Point Initiates SLM Corporation at Buy on Reduced Regulatory Risks

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Compass Point initiated coverage on SLM Corporation (NASDAQ: SLM) with a Buy rating and a $21 price target.

Compass Point noted, "We contend that SLM remains an attractive and unique story among financials, exhibiting improving credit, meaningful loan origination growth, consistent capital returns, and benefits from low interest rates, all at a reasonable valuation. Furthermore, we see less regulatory risk and expect limited downside ahead of the election, and would view Republican control of either the presidency or congress as a positive catalyst for the stock. Ultimately, as the SLM conversation shifts farther away from the run-off FFELP segment, investors will refocus on the growing private lending business, which should benefit from stronger underwriting, federal/state budgetary constraints and depressed university endowments, driving higher tuition costs and increased demand for private loans."

SLM Corporation closed at $16.66 on Wednesday.

Latest Ratings for SLM

DateFirmActionFromTo
Apr 2015BarclaysMaintainsOverweight
Apr 2015BMO CapitalMaintainsMarket Perform
Jan 2015Goldman SachsDowngradesBuyNeutral

View More Analyst Ratings for SLM
View the Latest Analyst Ratings

Posted-In: Compass PointAnalyst Color Initiation Intraday Update Analyst Ratings

 

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