SLM price target raised by $3.50 at TD Cowen, here’s why

TD Cowen raised the firm’s price target on SLM to $21 from $17.50 and keeps an Outperform rating on the shares after Sallie Mae provided its growth strategy for post CECL phase-in period as well as capital return strategy and loan sale premium and credit scenarios in an investor event. Its plan should allow for growing EPS, strong capital return and balance sheet growth beginning in 2025, notes the analyst, who adds that EPS growth and capital return are better than prior estimates.