Analyst Alexander Paris of Barrington reiterated a Buy rating on Strategic Education, retaining the price target of $105.00.
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Alexander Paris has given his Buy rating due to a combination of factors including Strategic Education’s strong financial performance in the third quarter, which exceeded expectations. The company’s revenue increased by 4.6% to $320 million, surpassing both the firm’s and the consensus estimates. Additionally, the adjusted EBITDA rose by 23.8%, and the adjusted diluted EPS saw a significant increase of 40.5%, indicating robust operational efficiency.
Paris also highlights the company’s favorable valuation metrics, noting that the stock is trading at a discount compared to its historical averages and its peer group. Despite a year-to-date decline in stock price, the secure dividend yield of 3.1% and the potential 37% upside to the 12-month price target of $105 contribute to the positive outlook. These factors, combined with the company’s strong growth projections for the coming years, underpin the reiterated OUTPERFORM investment rating.
According to TipRanks, Paris is a 5-star analyst with an average return of 15.8% and a 64.88% success rate. Paris covers the Consumer Defensive sector, focusing on stocks such as Adtalem Global Education, Stride, and Perdoceo Education.