Phoenix Education Partners: Strong Enrollment Momentum and Undervalued Shares Support 42% Upside Buy Rating

Analyst Alexander Paris from Barrington reiterated a Buy rating on Phoenix Education Partners, Inc. and keeping the price target at $45.00.

Alexander Paris has given his Buy rating due to a combination of factors reflecting both strong recent performance and attractive valuation. Phoenix Education Partners delivered first‑quarter revenue, EBITDA, and earnings that all exceeded his estimates and market expectations, driven by solid new student growth and record‑level retention that lifted total degreed enrollment. Management also reaffirmed full‑year 2026 guidance for revenue and adjusted EBITDA, signaling confidence in sustained demand across programs and continued operational momentum.

Paris further highlights that PXED’s shares trade at a substantial discount to comparable education peers on an adjusted EBITDA basis, despite the company’s robust return on equity, debt‑free balance sheet, and double‑digit long‑term EPS growth outlook. He notes that the current multiple is markedly below both the broader peer group and its closest competitors, making the stock appear undervalued. When combined with a 2.7% dividend yield and his assumption of only a modest expansion in the valuation multiple, his $45 price target implies roughly 42% upside over the next 12 months, supporting his reiterated Buy recommendation.

In another report released today, BMO Capital also reiterated a Buy rating on the stock with a $39.00 price target.