Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - JPMorgan upgraded SLM Corp. (NASDAQ:SLM) from Neutral to Overweight on Friday, while raising its price target to $38.00 from $29.00. The stock, currently trading at $33.71, has shown remarkable strength with a 58% return over the past year. According to InvestingPro data, SLM maintains a "GOOD" financial health score and appears slightly undervalued based on its Fair Value analysis.
The upgrade reflects JPMorgan’s higher originations outlook for SLM Corp., particularly stemming from the potential Grad PLUS opportunity. The firm increased its originations estimates for 2027 based on this opportunity.
JPMorgan believes the elimination of the Grad PLUS program through the Opportunity (SO:FTCE11B) and Burden-Based Budget Act (OBBBA) could generate an incremental $1.5 billion to $2.0 billion in originations for SLM Corp.
This potential increase in originations is expected to translate into accretive gain on sale income and could drive upside to share repurchases and earnings per share, according to the research firm.
JPMorgan anticipates that upside from the Grad PLUS opportunity will offset incremental credit risk resulting from the elimination of more favorable forbearance and debt reduction policies on Federal loans.
In other recent news, Sallie Mae reported strong financial results for the first quarter of 2025, with earnings per share (EPS) reaching $1.40, surpassing the expected $1.15. This marks an increase from the previous year’s EPS of $1.27. The company reported $375 million in net interest income, although this was a slight decrease compared to the prior year. Loan originations grew by 7.3% year-over-year, reaching $2.8 billion, while non-interest expenses decreased by 4%. In addition to these financial highlights, Sallie Mae has expanded its board of directors with the addition of Dr. Daniel Greenstein and Mr. Gary Millerchip, bringing significant experience in higher education and finance. The company reaffirmed its 2025 guidance, indicating a commitment to moderate and predictable balance sheet growth. Analysts from firms such as Morgan Stanley (NYSE:MS) and Barclays (LON:BARC) have shown interest in the company’s strategic initiatives and credit performance. These developments reflect Sallie Mae’s strategic focus on growth and risk management in the current economic climate.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.