SLM Corp.'s (NYSE:SLM) Accretion Potential Should Surpass Expectations Says FBR

SLM Corp. (NYSE:SLM) appears to be in position to exceed expectations in accretion, according to FBR, making the assertion after giving the student loan transactions from The Student Loan Corporation (NYSE:STU) a closer look.

FBR said, "After examining the company's student loan transaction from The Student Loan Corporation (NYSE:STU) in more detail, we believe accretion potential can surpass many investors' expectations, after factoring in additional floor income. In addition, as investors become more and more comfortable with the sustainability of Sallie Mae's earnings trajectory through restructuring savings, credit improvement, M&A deal accretion, and general improvement in the overall financing market for private student loans, we believe the stock still has considerable upside potential."

FBR Capital maintains an "Outperform/Top Pick" on SLM Corp., which closed Friday at $13.53, gaining $0.29, or 2.19 percent. FBR has a price target of $19 on SLM.