William Blair analyst Stephen Sheldon has maintained their bullish stance on MH stock, giving a Buy rating today.
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Stephen Sheldon’s rating is based on McGraw Hill’s strong fiscal second-quarter performance and an optimistic growth outlook. The company exceeded expectations with its quarterly results, reporting revenue that was 3% above consensus, despite a decline in the K-12 segment. This was offset by a significant increase in higher education revenue and a notable growth in digital revenue.
Additionally, McGraw Hill raised its fiscal 2026 guidance, reflecting increased confidence in its growth trajectory. The company anticipates higher recurring revenue and a strong free cash flow conversion rate. Management’s expectation of a return to growth in the K-12 segment by fiscal 2027 further supports the Buy rating, as it suggests a promising future despite current challenges.
In another report released today, Needham also reiterated a Buy rating on the stock with a $19.00 price target.