Strategic Education: Buy Rating Backed by Strong Financial Performance and Growth Prospects

Alexander Paris, an analyst from Barrington, reiterated the Buy rating on Strategic Education (STRA – Research Report). The associated price target remains the same with $105.00.

Alexander Paris has given his Buy rating due to a combination of factors including Strategic Education’s recent financial performance and future growth prospects. The company reported a notable increase in revenue and adjusted EBITDA for the first quarter, surpassing market expectations. Additionally, the adjusted diluted EPS showed a significant rise, indicating strong profitability.
Strategic Education’s strategic plan outlines a promising future with expected revenue growth and margin expansion over the next five years. Despite the stock’s current underperformance compared to its peers, it is trading at a discount, presenting a potential upside. The company’s secure dividend yield and strategic focus on domestic enrollment growth further support the Buy rating, suggesting a favorable investment opportunity.

Paris covers the Consumer Cyclical sector, focusing on stocks such as Lincoln Edu, Adtalem Global Education, and H&R Block. According to TipRanks, Paris has an average return of 14.7% and a 66.80% success rate on recommended stocks.