In a report released today, Ryan MacDonald from Needham reiterated a Buy rating on McGraw Hill, Inc., with a price target of $19.00.
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Ryan MacDonald has given his Buy rating due to a combination of factors that highlight McGraw Hill, Inc.’s strong market position and financial performance. The company reported impressive second-quarter results for 2026, with market share gains and better-than-expected enrollment contributions leading to a significant revenue increase in the higher education segment, surpassing expectations by 16%. This revenue growth also translated into a notable adjusted EBITDA beat, demonstrating the company’s operational efficiency.
Additionally, McGraw Hill’s performance in the K-12 segment was solid, with market share capture rates aligning with expectations. This positions the company well as it approaches a larger buying cycle in fiscal year 2027, suggesting potential for a return to growth. Despite the stock’s decline since its July IPO, MacDonald remains confident in McGraw Hill’s ability to achieve at least mid-single-digit growth in the upcoming fiscal year, reinforcing his Buy rating.
MacDonald covers the Technology sector, focusing on stocks such as Duolingo, Yext, and Liveperson. According to TipRanks, MacDonald has an average return of 2.0% and a 42.57% success rate on recommended stocks.