• Navient Corporation (NASDAQ:NAVI) reported an adjusted EPS of 39 cents, surpassing the Zacks Consensus Estimate.
• The company experienced a decline in net interest income (NII) and other income, contributing to a nearly 10.8% drop in early trading.
• Morgan Stanley set a price target of $12 for NAVI, indicating a potential upside of 22.32%.

Navient Corporation (NASDAQ:NAVI) is a leading entity in the student loan servicing industry, offering loan management, servicing, and asset recovery services across education, healthcare, and government sectors. Competing with firms like Nelnet and Great Lakes Educational Loan Services, Navient has recently been spotlighted by Jeffrey Adelson from Morgan Stanley with a price target of $12, suggesting a potential upside of 22.32% from its current trading price of $9.81.

Navient's recent financial performance has been commendable. In the fourth quarter of 2025, the company reported an adjusted earnings per share (EPS) of 39 cents, exceeding the Zacks Consensus Estimate of 31 cents. This marks a significant improvement from the 25 cents EPS reported in the same quarter the previous year, driven by reduced expenses and a slight decrease in provisions for loan losses.

Despite the robust EPS performance, Navient's shares saw a decline of nearly 10.8% in early trading. This downturn was primarily attributed to a decrease in net interest income (NII) and other income compared to the previous year. The Federal Education Loans segment witnessed a net income increase to $27 million, but the Consumer Lending income faced a substantial drop of 32.4% year over year.

The company's provisions for loan losses had a 26 cents per share impact, reflecting the macroeconomic outlook. Navient's stock price has seen fluctuations, with a current price of $9.81, marking a decrease of 18.52% with a change of $2.23. The stock has recorded a low of $9.77 and a high of $11.92 today, while over the past year, it reached a high of $16.07 and a low of $9.77.

With a market capitalization of approximately $975.42 million and a trading volume of 2,643,826 shares on the NASDAQ exchange, Navient's strong EPS performance and the potential upside highlighted by Morgan Stanley's price target suggest that Navient remains a noteworthy stock in the student loan servicing sector.