SLM price target lowered to $26 from $29 at Wedbush

Wedbush analyst David Chiaverini lowered the firm’s price target on SLM to $26 from $29 and keeps an Outperform rating on the shares. While Wedbush can’t rule out the possibility of a recession just yet, its base case scenario as of today is the Federal Reserve “may be able to glide the economy into a soft landing.” Banks should be in a stronger position “to pivot to a more offensive posture, as lower short term rates and a more normalized yield curve should make for a more ideal operating environment on multiple fronts,” the analyst tells investors in a research note. The firm recommends rotating into liability sensitive and interest rate neutral banks.