In a report released today, Dominick Gabriele from Oppenheimer maintained a Buy rating on SLM Corporation (NASDAQ: SLM), with a price target of $13. The company’s shares opened today at $10.04, close to its 52-week low of $9.65.
Gabriele observed:
“SLM reported better than consensus “core” EPS ex one-time expenses of $0.26 vs. consensus $0.24. Overall the estimates were fairly in line with our estimates. With the buildout of more consumer products (card) SLM is expanding its business model. This is occurring as the underlying student lending business (86% of AEA in MRQ) hums along producing strong EPS growth. Credit is turning into a tailwind outside of personal loans, yet depending on where expenses pencil out in 2019 (we estimate 36.3% efficiency), there could be offsets to credit performing better than our estimates with 1% efficiency worth ~$0.03 to 2019FY. We see bias toward upside EPS revisions vs. down and view SLM as the best way to play the student loan space currently over peers.”
According to TipRanks.com, Gabriele is a 1-star analyst with an average return of -2.3% and a 50.0% success rate. Gabriele covers the Financial sector, focusing on stocks such as Synchrony Financial, American Express, and Ally Financial.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for SLM Corporation with a $15.08 average price target.
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SLM Corporation’s market cap is currently $4.6B and has a P/E ratio of 13.38. The company has a Price to Book ratio of 1.98.
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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.
