Phoenix Education Partners, Inc.: Strong Growth Prospects with Buy Rating Amid Positive Earnings and Valuation Gap

Analyst Greg Parrish of Morgan Stanley maintained a Buy rating on Phoenix Education Partners, Inc., retaining the price target of $45.00.

Greg Parrish has given his Buy rating due to a combination of factors that suggest Phoenix Education Partners, Inc. is poised for future growth. The company’s fourth-quarter results slightly exceeded expectations, with adjusted EBITDA surpassing both Morgan Stanley and consensus estimates. This performance, coupled with the company’s guidance for fiscal year 2026, which was also slightly better than anticipated, indicates a positive outlook despite some uncertainties related to student verification processes.
Moreover, Phoenix Education Partners is expected to outperform its peers due to a significant valuation gap, trading at a lower multiple of adjusted EBITDA compared to its competitors. The company’s strong demand for new students and high retention rates further bolster confidence in its enrollment trends for the coming year. These factors, along with the conservative nature of the company’s guidance, suggest potential upside and earnings catalysts, leading to the reiteration of an Overweight rating and a price target of $45, offering substantial upside potential.