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NEW YORK (TheStreet) -- JPMorgan initiated coverage on NavientCorp.  (NAVI) - Get Navient Corp Report stock with an "overweight" rating on Monday. The firm set a $15 price target on the stock.

The Wilmington, DE-based student lending company offers compelling ways for opportunistic investment in the sector, the firm said.

Student loan debt has tripled to $1.2 trillion since 2004, JPMorgan said.

Changing government policies and rapid growth in the industry could substantially impact Navient's performance, the firm added.

Additonally, Navient's revenue will diversify as the company expands its servicing and asset recovery division, the firm said.

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Shares of Navient were down 0.09% to $11.76 in early-morning trading on Monday. 

Separately, TheStreet Ratings team rates NAVIENT CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate NAVIENT CORP (NAVI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for NAVIENT CORP is currently very high, coming in at 71.49%. Regardless of NAVI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NAVI's net profit margin of 19.14% compares favorably to the industry average.
  • NAVI, with its decline in revenue, slightly underperformed the industry average of 4.7%. Since the same quarter one year prior, revenues slightly dropped by 5.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The debt-to-equity ratio is very high at 33.76 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Net operating cash flow has decreased to $404.00 million or 19.52% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • You can view the full analysis from the report here: NAVI

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.