Compass Point Has Positive Outlook On SLM Corporation

In a report published Thursday, Compass Point analyst Michael Tarkan reiterated a Buy rating and $11.00 price target on

. In the report, Compass Point noted, “We reiterate our Buy rating on SLM shares after the company reported a slight 3Q14 beat, primarily driven by lower-than-expected provision expenses. We believe results demonstrated the key pieces to the SLM story: the company originated $1.6B of private student loans (+8% YOY), sold $1.1B of loans (at a 7.8% gain), and still managed to grow its loan portfolio by 26% YOY. Credit expenses remain under control, and as investors begin to look into 2015 and beyond, the embedded and predictable earnings growth embedded within the franchise should help drive the shares higher, in our view. We plan to update our model after today's earnings call.” SLM Corporation closed on Wednesday at $8.90.