Franklin Covey: Near-Term Softness but Compelling Valuation and FY26 Margin Expansion Support OUTPERFORM/Buy Rating

Analyst Alexander Paris of Barrington reiterated a Buy rating on Franklin Covey Company, retaining the price target of $22.00.

Alexander Paris has given his Buy rating due to a combination of factors that, in his view, position Franklin Covey for attractive risk‑reward despite near‑term softness. He acknowledges that the latest quarterly results came in slightly under consensus, with lower revenue and EBITDA driven by prior-year demand weakness and higher costs, but he emphasizes that management reaffirmed its full-year outlook on the back of robust growth in invoiced amounts that should convert into revenue over the coming quarters. He highlights that the company expects modest revenue growth and a stronger improvement in adjusted EBITDA for FY26, aided by cost-reduction and restructuring efforts already initiated. He also notes that Franklin Covey’s strategic investments, though pressuring near-term earnings, are intended to accelerate growth and profitability from the second half of FY26 onward.
At the current share price, Paris views the valuation as compelling, pointing out that the stock trades at a significant discount to its historical EBITDA multiples after a sharp decline in 2025. He believes investors can “look over the valley” to better fundamentals, supported by increasing invoiced business, planned margin expansion, and an active share repurchase program. His $22 twelve-month price target is based on what he considers a conservative EBITDA multiple and implies roughly 23% upside, which reinforces his positive stance. Taken together, these elements underpin his OUTPERFORM/Buy rating on Franklin Covey shares.

In another report released today, Northland Securities also reiterated a Buy rating on the stock with a $38.00 price target.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FC in relation to earlier this year.