William Blair analyst Stephen Sheldon has reiterated their bullish stance on LRN stock, giving a Buy rating on April 28.
Stephen Sheldon has given his Buy rating due to a combination of factors, including Stride’s impressive financial performance and optimistic future guidance. The company reported robust fiscal third-quarter results, with revenue reaching $613 million, marking an 18% growth and surpassing both estimates and consensus. This growth was driven by a significant increase in total enrollments, which rose by 21% year-over-year, with notable growth in both general education and career learning sectors.
Stride’s management has also raised its fiscal 2025 guidance, projecting a revenue increase to $2.34 billion and a substantial growth in adjusted operating income. The company’s ability to expand its gross margin and maintain a strong enrollment trajectory, despite a slight decrease in revenue per enrollment, further supports the positive outlook. These factors, combined with effective cost management and strategic investments, underpin Sheldon’s confidence in Stride’s continued success and justify the Buy rating.
In another report released on April 28, Canaccord Genuity also maintained a Buy rating on the stock with a $155.00 price target.