Marcelo Santos, an analyst from J.P. Morgan, has initiated a new Buy rating on Laureate Education (LAUR).
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Marcelo Santos has given his Buy rating due to a combination of factors that highlight Laureate Education’s strong market position and growth potential. The company is expected to achieve consistent high-single-digit growth in USD, driven by increasing penetration in the higher education markets of Peru and Mexico. This growth is supported by favorable economic conditions, including strong margins and efficient working capital management, which contribute to robust free cash flow generation.
Moreover, Laureate Education benefits from excellent cash flow conversion, with nearly all earnings being converted into cash, and a substantial buyback program that is expected to support a significant EPS CAGR from 2026 to 2029. The company’s operations in Mexico and Peru face lower regulatory risks compared to Brazilian peers, as there is limited government intervention in these markets. Additionally, the absence of major structural changes in these countries provides greater visibility and stability for the company’s future performance. These factors justify the company’s valuation and support the $40 price target set for December 2026.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $33.00 price target.