Perdoceo Education: Strong Financial Performance and Strategic Growth Justify Buy Rating and Target Price Increase

Analyst Alexander Paris of Barrington reiterated a Buy rating on Perdoceo Education (PRDO – Research Report), boosting the price target to $40.00.

Alexander Paris has given his Buy rating due to a combination of factors that highlight Perdoceo Education’s strong financial performance and strategic positioning. The company reported a significant increase in revenue and adjusted operating income for the first quarter, surpassing both the analyst’s and management’s expectations. This robust performance was driven by high student retention and engagement at Colorado Technical University, as well as growth in corporate student programs and prospective student interest.
Furthermore, Perdoceo Education’s management has raised its full-year 2025 guidance, indicating confidence in continued growth. The company’s shares are trading at a discount compared to its peers, despite better-than-expected results and a strong cash position with no long-term debt. The recent acquisition of the University of St. Augustine for Health Sciences is expected to be accretive, contributing to the company’s positive outlook. These factors, combined with a raised dividend and a favorable valuation, support the Buy rating and a target price increase to $40, representing a potential upside of 20%.