SLM Corp.'s (NYSE:SLM) Earnings Potential Starting to Emerge

While they keep their rating and price target level, FBR sees SLM Corp.'s (NYSE:SLM) earnings power starting to increase their momentum.

FBR says, "We reiterate our rating and price target following yesterday's 4Q10 earnings report after the close. Although 4Q10 was another noisy quarter, we believe the true earnings power of the company is beginning to emerge and will provide the necessary upside momentum for investors going forward. Furthermore, recent capital management efforts should provide sufficient breathing room for the company to service its upcoming debt obligations, begin an accretive stock buyback program, and acquire additional FFELP portfolios."

FBR Capital maintains an "Outperform/Top Pick" on SLM Corp. (SLM), which closed Thursday at $14.13, up $0.31, or 2.24 percent. FBR has a price target of $19 on SLM.