Strategic Education: Strong Q1 2025 Performance and Attractive Valuation Drive Buy Rating

Analyst Alexander Paris of Barrington reiterated a Buy rating on Strategic Education (STRA – Research Report), reducing the price target to $105.00.

Alexander Paris has given his Buy rating due to a combination of factors including Strategic Education’s strong financial performance in the first quarter of 2025, where both revenue and earnings exceeded expectations. Despite a slight shortfall in enrollment numbers, the company’s adjusted EBITDA and EPS showed significant growth, surpassing both internal estimates and market consensus.
Additionally, the stock is trading at a discount compared to its peers, offering a compelling valuation opportunity. With a stable dividend yield of 3.0% and a potential upside of 28% based on the revised price target of $105, Paris reiterates an OUTPERFORM rating, highlighting the stock’s attractive investment potential.

In another report released today, Truist Financial also maintained a Buy rating on the stock with a $105.00 price target.