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

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Earnings Scheduled For January 17, 2018

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
Jan 2018OppenheimerInitiates Coverage OnOutperform
Oct 2017CitigroupInitiates Coverage OnBuy
Jan 2017WedbushInitiates Coverage OnOutperform

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

 

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