Strategic Education: Buy Rating Reaffirmed Amid Discounted Valuation and Growth Prospects

Alexander Paris, an analyst from Barrington, reiterated the Buy rating on Strategic Education (STRA – Research Report). The associated price target was lowered to $120.00.

Alexander Paris has given his Buy rating due to a combination of factors, despite some mixed results in Strategic Education’s recent financial performance. The company’s fourth-quarter earnings exceeded expectations in terms of adjusted EBITDA and EPS, although revenue and enrollment figures fell short. This performance led to a significant drop in the stock price, presenting a potential buying opportunity.
Paris maintains an optimistic outlook for Strategic Education, projecting a solid growth trajectory with anticipated increases in revenue, adjusted EBITDA, and EPS for the upcoming years. The stock is currently trading at a discount compared to its peers, which historically has not been the case, making it an attractive investment. Furthermore, the company’s secure dividend yield of 3.0% adds to its appeal, supporting the reiterated OUTPERFORM rating and a 12-month price target of $120, suggesting substantial upside potential.

According to TipRanks, Paris is a 5-star analyst with an average return of 11.8% and a 62.12% success rate. Paris covers the Consumer Cyclical sector, focusing on stocks such as Perdoceo Education, Carriage Services, and Adtalem Global Education.