SLM (SLM) is moving closer to unveiling a new "capital-light" private credit partnership that could help stabilize long-term cash flow, Morgan Stanley said Friday.

The investment firm said the partnership is expected to be announced within one to two months and discussed in detail at SLM's December investor forum. While the arrangement is boosting 2025 earnings per share guidance by about 20 cents, the revision is "more technical than core," tied to accounting effects from moving $1.6 billion in loans into held-for-sale status, the report said.

Looking ahead, Morgan Stanley analysts said they view the partnership as a meaningful step toward longer-term earnings resilience, generating steadier cash flows than SLM's traditional gain-on-sale model.

Morgan Stanley maintained its overweight rating but trimmed its price target to $36 from $37.

SLM shares were up 4% in recent Friday trading.

Price: 27.79, Change: +1.06, Percent Change: +3.97