Analyst Jeffrey Silber of BMO Capital maintained a Buy rating on Strategic Education (STRA – Research Report), retaining the price target of $98.00.
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Jeffrey Silber has given his Buy rating due to a combination of factors that suggest Strategic Education is well-positioned for future growth. One of the primary reasons is the potential of their Education Technology Solutions (ETS) segment, which is expected to grow at a robust rate of around 30% with strong margins exceeding 40% in the long term. This segment, although currently a smaller part of the company’s revenue, is anticipated to contribute significantly more in the future as it outpaces other segments.
Additionally, despite challenges in the Australian market and a slowdown in the US Higher Education (USHE) growth, Silber believes that the current stock price already reflects these issues, trading at a discount compared to peers. The management’s strategy to focus on mid-single-digit enrollment growth in the USHE segment and their leadership position in the market further supports the Buy rating. Moreover, the regulatory environment in the US is seen as relatively benign, which could provide a stable backdrop for the company’s operations.
According to TipRanks, Silber is a 5-star analyst with an average return of 9.2% and a 60.28% success rate. Silber covers the Industrials sector, focusing on stocks such as ManpowerGroup, Robert Half, and Trueblue.
In another report released on June 6, Barrington also assigned a Buy rating to the stock with a $105.00 price target.