Franklin Covey Company: Strategic Transformation and Market Positioning Drive Buy Rating

In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Franklin Covey Company (FC – Research Report), with a price target of $35.00.

Alexander Paris has given his Buy rating due to a combination of factors that highlight Franklin Covey Company’s potential for growth and value. Despite recent challenges, including decreased revenue and adjusted EBITDA due to government contract terminations and uncertain business conditions, the company has implemented a strategic transformation in its North American Enterprise Division. This transformation is expected to drive significant revenue growth, moving from single-digit to double-digit increases, which should positively impact adjusted EBITDA and cash flow.
Moreover, Franklin Covey’s shares are currently trading at a discount compared to its Ed Tech peers, providing an attractive investment opportunity. The company’s efforts to enhance its sales force and leadership, alongside its strategic investments, are anticipated to facilitate a return to growth and margin expansion in the upcoming fiscal year. Consequently, Alexander Paris reiterates an OUTPERFORM rating with a 12-month price target of $35, indicating a potential upside of over 50% from current levels.