Citi Upgrades SLM Corp. (SLM) to Buy

Citi analyst Arren Cyganovich upgraded SLM Corp. (NASDAQ: SLM) from Neutral to Buy with a price target of $23.00 (from $14.00).

The analyst comments "We are upgrading Sallie Mae (SLM) to Buy from Neutral and increasing our target price to $23 from $14 due to higher expected balance sheet growth, potential to grow market share from a competitor exit, and we expect higher gain on sale margins as interest rates fall from elevated levels. The target rises due to higher EPS, rolling to 2025, and increasing the multiple to 7.1x from 5.2x. While we acknowledge that this multiple is substantially higher than our prior multiple, we believe it represents a better view of SLM’s growth opportunities as it moves away from selling the bulk of its loan production in the coming years."

For an analyst ratings summary and ratings history on SLM Corp. click here. For more ratings news on SLM Corp. click here.

Shares of SLM Corp. closed at $18.54 yesterday.

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