On Friday, Wells Fargo raised its price target on SLM Corp (NASDAQ:SLM) shares to $27.00 from $24.00. The firm maintained its Overweight rating on the stock. The adjustment reflects optimism ahead of the company's second-quarter earnings, with expectations of a positive credit update.
The bank's analyst noted several factors contributing to the positive outlook for SLM Corp. These include momentum in credit improvement, thanks to the early success of new loan modification and extended grace programs.
Additionally, the analyst highlighted market share opportunities arising from Discover's exit from the market and SLM Corp's sound fundamentals, such as net interest margin (NIM) and operating expenses.
The analyst's comments come in anticipation of the company’s upcoming quarterly earnings report. The positive credit commentary provided by the firm suggests confidence in the company's financial health and its ability to maintain a strong position in the market.
SLM Corp, known for its education financing services, seems poised to benefit from the mentioned tailwinds. The company's strategic initiatives and adjustments to its credit programs appear to be paying off, as noted by the firm's endorsement of the Overweight rating.
The price target increase by Wells Fargo indicates a potential upside for SLM Corp's stock, as the market gears up to assess the company's quarterly financial performance. Investors will be watching closely to see if the company's results align with the firm's encouraging projections.
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