Zacks Investment Research upgraded shares of SLM Corporation (SLM) from NEUTRAL to OUTPERFORM on July 13, 2012, with a target price of $19.00.
We are upgrading our recommendation on SLM Corp. to Outperform from Neutral based on its impressive capital deploying efforts. Moreover, we believe that the regulatory issues would be manageable on the company's part. In addition, its diversifying efforts, improving credit quality trends and increasing private student loan originations serve as positive catalysts. SLM Corp.'s first quarter 2012 core earnings came in ahead of the Zacks Consensus Estimate, aided by a fall in loan loss provisions and expenses. Private education loan origination advanced 23% year over year while loan charge-offs reached the lowest rate since the third quarter of 2008. Despite challenges, we believe that its leading position in the student lending market, cost containment efforts as well as federal student loan asset acquisition would help the company navigate well through the current cycle.
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