Jefferies analyst John Hecht initiated coverage of Navient Corp. at "hold," saying there is limited upside to the valuation following a recent rally.

Hecht said in a Dec. 7 note that Navient's stock price drew nearer to the level of his assessment of a sum-of-the-parts valuation. The analyst continues to believe that Navient is a strong company and lauded the management's focus on capital returns. Navient's focus on tapping special servicing opportunities within its business services segment could boost earnings power, he added.

Hecht's price target on Navient is $18. His non-GAAP estimates for the company are $1.83 for 2016, $1.94 for 2017 and $2.08 for 2018.