Compass Point Cuts Price on Navient (NAVI) Following a Weak Pre-Announcement

Compass Point reiterates a Neutral rating on Navient Corporation (NASDAQ: NAVI), and cuts the price target to $16.50 (from $22.00), after the company pre-announced weak 2Q15 earnings. Management lowered its 2015 core EPS guidance to $1.85, from $2.20. NAVI is expected to report its 2Q15 earnings on July 21st.

Analyst Michael Tarkan commented, "We reiterate our Neutral rating on NAVI and lower our price target to $16.50, from $22, after the company pre-announced weak 2Q15 earnings and lowered 2015 guidance. We are also lowering our 2015 and 2016 core EPS estimates to $1.87 and $2.10, respectively, from $2.18 and $2.35. The depressed outlook is primarily driven by lower net interest margin (NIM) and higher provisions. Our $16.50 price target reflects 8x our revised 2016 core EPS estimate, primarily reflecting muted growth and regulatory risk, offset by strong capital activity."

For an analyst ratings summary and ratings history on Navient Corporation click here. For more ratings news on Navient Corporation click here.

Shares of Navient Corporation closed at $18.36 yesterday.

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