Gold prices steady with focus on Ukraine-Russia, Jackson Hole
Investing.com - TD Cowen has reiterated its Buy rating and $40.00 price target on SLM Corp. (NASDAQ:SLM) following market concerns over the company’s July trust data. According to InvestingPro data, the stock currently trades at $30.56, with analyst targets ranging from $35 to $44, suggesting significant upside potential. The company appears fairly valued based on InvestingPro’s Fair Value analysis.
The financial services firm noted that SLM’s stock declined Friday after the company reported an increase in early-stage delinquencies in its July trust data, but believes the market reaction was "overdone." The company maintains strong fundamentals with a P/E ratio of 15.13 and has demonstrated consistent profitability over the last twelve months.
TD Cowen pointed out that month-to-month variability is typical in trust data, while late-stage loan performance remains strong. The firm highlighted that SLM management has indicated no meaningful difference in performance between borrowers with or without federal loans.
The research note emphasized that the recent delinquency data likely does not signal the beginning of broad consumer credit deterioration, contrary to some market concerns. TD Cowen distinguished the current situation from previous cycles where student loans worsened before other consumer credit categories.
SLM Corp has maintained its long-term charge-off projection range of high-1% to low-2%, suggesting the company does not anticipate significant deterioration in its loan portfolio despite the recent early-stage delinquency increase. The company’s financial health score from InvestingPro is rated as "Fair," with particularly strong marks in profitability metrics.
In other recent news, Sallie Mae reported its second-quarter earnings for 2025, which fell significantly short of analyst expectations. The company posted earnings per share of $0.32, missing the consensus estimate of $0.49 by $0.17. This earnings miss was a notable development for the student loan provider. Additionally, the company’s provision for credit losses surged to $149 million, a substantial increase from $17 million in the same quarter of the previous year. This increase was attributed to a release of provision from a loan sale in Q2 2024, an increase in loan commitments, and changes in the economic outlook. These recent developments have drawn attention from investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.