Oppenheimer Maintains a Buy Rating on SLM Corporation (SLM)

In a report released yesterday, Dominick Gabriele from Oppenheimer maintained a Buy rating on SLM Corporation (SLM), with a price target of $13. The company’s shares closed yesterday at $10.73.

Gabriele commented:

“SLM reported 4Q18 EPS of $0.33 vs. our/consensus’ $0.28/$0.27E. We think the most important takeaway is that SLM is now a capital return story and is likely to expand its investor base as they look to return ~10% of their capital to shareholders in the form of a newly instituted dividend. SLM also has authorization to repurchase $200M of shares in 2019. We haven’t baked in additional share repurchases in 2020 but it is possible. We think that consolidations and a maturing book likely result in slower YoY loan growth in 2019/2020, yet the student loan industry may wind up being one of the last bastions of growth as card and various other consumer lending products trend lower.”

According to TipRanks.com, Gabriele is a 1-star analyst with an average return of -5.8% and a 27.3% success rate. Gabriele covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Santander Consumer USA.

SLM Corporation has an analyst consensus of Strong Buy, with a price target consensus of $13.

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The company has a one-year high of $12.46 and a one-year low of $7.95. Currently, SLM Corporation has an average volume of 3.46M.

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SLM Corp. engages in the origination, servicing, and administration of education loans. Its services include private education loans, banking, college savings, and insurance services. The company was founded in 1972 and is headquartered in Newark, DE.