Bank of America Initiates Neutral Coverage on Navient Corp.

Analysts have issued a neutral recommendation on Navient Corporation - Preferred Security, anticipating a 5.24% downside. With projected revenue decreasing by 13.65%, investors are advised to consider the implications on stock performance.

Date: 01-10-2024

AI Rating: 5

The report indicates that Bank of America Securities has commenced coverage of Navient Corporation - Preferred Security (Ticker: JSM) with a Neutral recommendation. This is generally seen as a cautious stance, implying that analysts are not confident in significant growth potential.

Notably, the average one-year price target has been set at $19.25/share, which points to a 5.24% decline from the current closing price of $20.31/share. This projected downside could lead to hesitancy among investors, potentially driving the stock price down as expectations align with analyst forecasts.

In terms of revenue, the report details a projected annual revenue of $891 million, marking a significant decrease of 13.65%. Such a decline is a critical indicator of potential struggles for the company and might raise concerns regarding its growth trajectory.

The analysis also mentions a projected non-GAAP EPS of 3.13, though the report does not elaborate on historical EPS values or expectations for future performance. Without context to previous EPS figures, the utility of this number is limited in assessing overall company health.

Fund sentiment appears stable, with the report noting that there are 10 funds or institutions holding positions in the preferred security, unchanged from the prior quarter. However, total shares owned by institutions decreased by 2.90%, indicating a reduction in institutional interest.

Moreover, some major ETF holders such as PFF - iShares Preferred, PGX - Invesco Preferred ETF, and PFFD - Global X U.S. Preferred ETF have reported decreases in shares held, which could further signify declining confidence in this security within the broader investment community. The decreased portfolio allocation across these funds adds to the bearish sentiment surrounding JSM.

Stocks: JSM