BTIG analyst Marvin Fong maintained a Buy rating on McGraw Hill, Inc. yesterday and set a price target of $19.00.
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Marvin Fong’s rating is based on McGraw Hill’s strong quarterly performance and promising future outlook. The company reported impressive third-quarter results, surpassing expectations with a $30 million EBITDA beat. This was driven by significant market share gains in both the K-12 and Higher Education segments, with the latter reaching a 30% share. The company’s strategic initiatives, such as the adoption of new products and expansion in key markets, have shown positive signals, further supporting the Buy rating.
Moreover, McGraw Hill’s raised guidance for fiscal year 2026, with increased revenue and Adjusted EBITDA expectations, underscores the company’s growth trajectory. Additional highlights include robust performance in digital offerings and a commitment to reducing net leverage, which enhances financial stability. These factors collectively affirm McGraw Hill’s strong execution and potential for continued success, justifying the Buy recommendation.