William Blair analyst Stephen Sheldon has reiterated their bullish stance on LRN stock, giving a Buy rating on August 29.
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Stephen Sheldon has given his Buy rating due to a combination of factors influencing Stride’s promising outlook. The company’s recent growth and earnings trajectory have been notably impressive, bolstered by favorable industry trends such as increasing dissatisfaction with traditional K-12 schooling and growing awareness of virtual public school options. Stride’s management, including CEO James Rhyu, has been executing effectively, and the company is projected to achieve 10%-15% enrollment growth by the start of fiscal 2026, suggesting potential upside to current estimates.
Furthermore, Stride’s stock has been the top performer on William Blair’s coverage list since 2023, indicating strong potential for generating returns in both the short and long term. The company’s strategic focus on socialization, community building, and increasing retention rates, along with new partnerships and capital deployment opportunities, further supports its growth potential. Despite trading at a premium compared to its peers, Stride is considered a higher-quality business in a more attractive market, justifying its valuation and Buy rating.
In another report released on August 29, Barrington also maintained a Buy rating on the stock with a $185.00 price target.