McGraw Hill, Inc. (MH) has received a new Buy rating, initiated by Needham analyst, Ryan MacDonald.
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Ryan MacDonald has given his Buy rating due to a combination of factors that highlight McGraw Hill’s strategic positioning in the education sector. The company is leveraging the digitization of its content to offer a personalized, AI-driven learning experience, which is expected to be more beneficial than risky in the coming years.
Furthermore, McGraw Hill is expanding its market share across both K-12 and higher education segments through technological advancements. This growth is anticipated to help the company outperform during a smaller buying cycle in FY26, potentially leading to better revenue and adjusted EBITDA than currently estimated. The current valuation, based on a multiple of 7.3 times the FY26 EBITDA estimates, is seen as attractive, supporting the Buy recommendation.
In another report released today, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $19.00 price target.