Phoenix Education Partners: Strong Execution, Regulatory Wins, and Capital Returns Underscore Undervalued Buy Opportunity

Analyst Jeffrey Silber of BMO Capital reiterated a Buy rating on Phoenix Education Partners, Inc., reducing the price target to $39.00.

Jeffrey Silber has given his Buy rating due to a combination of factors that point to both solid current execution and a favorable risk‑reward profile. Phoenix Education Partners, Inc. delivered first‑quarter results that exceeded expectations, primarily on stronger‑than‑anticipated margins, with revenue and enrollment both coming in above his forecasts despite a planned slowdown. The company’s degreed enrollment growth outpaced projections, supported by robust B2B demand and improved student retention, while management’s productivity initiatives continue to provide operating benefits even amid ongoing “ghost student” challenges. Silber also views positively that all of PXED’s programs passed the Department of Education’s new OBBBA accountability framework, where the company compared well versus other covered education providers.

Silber highlights that management reaffirmed full‑year FY2026 guidance only one quarter into the fiscal year, signaling confidence in achieving modest revenue growth and further adjusted EBITDA margin expansion through enrollment growth, operating leverage, and incremental cost efficiencies. The introduction of a quarterly dividend that was higher than anticipated adds an additional shareholder‑friendly component to the equity story and reflects a healthy balance sheet and cash generation profile. In his view, while PXED trades at some discount to its for‑profit postsecondary peers, the current valuation gap is overly wide given the company’s operational performance, regulatory positioning, and capital return. Collectively, these elements support his view that the stock offers upside potential, justifying his Buy recommendation on Phoenix Education Partners, Inc.

Silber covers the Consumer Defensive sector, focusing on stocks such as Stride, KinderCare Learning Companies Inc, and McGraw Hill, Inc.. According to TipRanks, Silber has an average return of 5.9% and a 55.84% success rate on recommended stocks.

In another report released today, TipRanks – xAI also reiterated a Buy rating on the stock with a $37.00 price target.