FBR Capital Maintains an 'Outperform' on SLM Corp (SLM); Sallie Looks Different, but She's Still Attractive
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Price: $22.10 --0%
Rating Summary:
16 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
Rating Summary:
16 Buy, 4 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
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FBR Capital (transfers coverage) and maintains an 'Outperform' on SLM Corp. (NYSE: SLM), PT $19.
FBR analyst says, "Despite the meaningful appreciation in SLM shares year to date, we see further upside from current levels as we expect investors to become more and more comfortable with the company's forward earnings trajectory. We also believe the "runoff" label that still gets assigned to SLM is somewhat misplaced given management's opportunities to grow EPS over at least the next few years. As the company's Federal Family Education Loan Program (FFELP) balances wind down, we see near-term earnings support driven by lower private provision expense and reserve releases, additional accretive FFELP portfolio acquisitions, and ongoing expense reductions. Longer term, we expect growth from the company's private student loan and servicing businesses. With shares trading at just 8x our FY12 EPS estimate, we believe these drivers, coupled with the company's regained capital flexibility, provide attractive risk/reward for investors."
"Our core EPS estimates for FY11 and FY12 of $1.80 and $1.95, respectively, are ahead of consensus of $1.72 and $1.86."
For more ratings news on SLM Corp. click here and for the rating history of SLM Corp. click here.
Shares of SLM Corp. closed at $15.76 yesterday.
FBR analyst says, "Despite the meaningful appreciation in SLM shares year to date, we see further upside from current levels as we expect investors to become more and more comfortable with the company's forward earnings trajectory. We also believe the "runoff" label that still gets assigned to SLM is somewhat misplaced given management's opportunities to grow EPS over at least the next few years. As the company's Federal Family Education Loan Program (FFELP) balances wind down, we see near-term earnings support driven by lower private provision expense and reserve releases, additional accretive FFELP portfolio acquisitions, and ongoing expense reductions. Longer term, we expect growth from the company's private student loan and servicing businesses. With shares trading at just 8x our FY12 EPS estimate, we believe these drivers, coupled with the company's regained capital flexibility, provide attractive risk/reward for investors."
"Our core EPS estimates for FY11 and FY12 of $1.80 and $1.95, respectively, are ahead of consensus of $1.72 and $1.86."
For more ratings news on SLM Corp. click here and for the rating history of SLM Corp. click here.
Shares of SLM Corp. closed at $15.76 yesterday.
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