DA Davidson analyst Arren Cyganovich recommends buying Sallie Mae on weakness. He says that the company's Q2 results were "solid," and he believes that " rising loan consolidations away from Sallie Mae and management's acknowledgement of the issue" caused the stock to be weak yesterday.. But he says that this is not a new issue, while the recent increases aren't significant and the company's earnings should still rise significantly going forward. He adds that its "competitive position remains unchanged." The analyst keeps a $16 price target and a Buy rating on the stock.

Reports Q1 NII $387M vs. $405M last year. Reports Q1 net interest margin 5.49% vs. 5.70% last year.