Analyst Alexander Paris of Barrington reiterated a Buy rating on Universal Technical Institute, retaining the price target of $36.00.
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Alexander Paris has given his Buy rating due to a combination of factors that highlight the potential for Universal Technical Institute’s future growth. The company reported fourth-quarter results that exceeded expectations, with a notable increase in revenue and earnings per share surpassing estimates. Despite a mixed initial guidance for fiscal year 2026, where revenue projections are above expectations but earnings per share are below, the company is poised for long-term growth.
Paris acknowledges that the planned investments in new programs and campuses may temporarily impact earnings in the near term. However, these investments are expected to drive strong enrollment and revenue growth, leading to significantly higher margins and earnings in fiscal years 2028 and 2029. The stock’s current valuation, trading at a premium compared to its peers, along with a nearly 50% upside potential to the $36 price target, supports the OUTPERFORM rating.
In another report released today, Northland Securities also maintained a Buy rating on the stock with a $38.00 price target.