SLM (SLM – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Jeffrey Adelson from Morgan Stanley maintained a Buy rating on the stock and has a $38.00 price target.
Jeffrey Adelson’s rating is based on the anticipated changes in federal student loan policies, which are expected to benefit SLM significantly. With Congress likely to impose caps on federal graduate loans, particularly Grad PLUS, there is an expected shift of borrowers towards private lending, where SLM holds a substantial market share.
As a result, Adelson projects an increase in SLM’s originations by $3.5 billion by 2026, boosting the company’s earnings per share by 20% to $3.80. This optimistic outlook leads to a price target increase to $38, representing a 29% upside potential. The expectation of a federal pullback in student lending presents a strategic opportunity for SLM to capture a larger share of the market, reinforcing the Buy rating.
According to TipRanks, Adelson is an analyst with an average return of -4.6% and a 41.82% success rate. Adelson covers the Financial sector, focusing on stocks such as Bread Financial Holdings, American Express, and Synchrony Financial.
In another report released on March 5, TD Cowen also maintained a Buy rating on the stock with a $35.00 price target.
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