tiprankstipranks
Advertisement
Advertisement

Analyst Reiterates Buy on McGraw Hill, Citing 2027 Growth Reacceleration from Major K-12 Adoption Cycles Despite Near-Term Headwinds

Analyst Reiterates Buy on McGraw Hill, Citing 2027 Growth Reacceleration from Major K-12 Adoption Cycles Despite Near-Term Headwinds

William Blair analyst Stephen Sheldon has reiterated their bullish stance on MH stock, giving a Buy rating yesterday.

Meet Samuel – Your Personal Investing Prophet

Stephen Sheldon has given his Buy rating due to a combination of factors tied to McGraw Hill’s growth outlook and market positioning. He sees a credible path back to meaningful revenue expansion in fiscal 2027, supported by a larger K-12 core adoption cycle, including sizable upcoming math opportunities in California and Texas and ELA in Florida, where the company has already built a strong foothold.

At the same time, he slightly tempers near-term expectations to reflect potential delays in district decision-making and the emergence of new competition, particularly from state-backed offerings in Texas. Even after revising his model with more conservative K-12 growth assumptions, he believes the long-term upside from these adoption waves and the company’s improving digital platform engagement remains attractive relative to the current share price, justifying a Buy recommendation.

Sheldon covers the Real Estate sector, focusing on stocks such as CoStar Group, Jones Lang Lasalle, and FirstService. According to TipRanks, Sheldon has an average return of -12.5% and a 26.86% success rate on recommended stocks.

In another report released yesterday, Needham also maintained a Buy rating on the stock with a $19.00 price target.

Disclaimer & DisclosureReport an Issue

1