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Universal Technical Institute: Strong Q1 Results and Upward Guidance Justify Buy Rating and Raised Price Target

Universal Technical Institute: Strong Q1 Results and Upward Guidance Justify Buy Rating and Raised Price Target

Analyst Alexander Paris from Barrington reiterated a Buy rating on Universal Technical Institute (UTIResearch Report) and increased the price target to $35.00 from $30.00.

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Alexander Paris has given his Buy rating due to a combination of factors, primarily the impressive financial performance of Universal Technical Institute in the first quarter of fiscal year 2025. The company reported revenues and adjusted EBITDA that significantly exceeded both their internal estimates and those of FactSet consensus, indicating strong operational execution and financial health.
Moreover, the upward revision of the company’s full-year guidance underscores management’s confidence in continued growth and profitability. The revised guidance includes higher expectations for new student starts, revenue, net income, and diluted EPS, all of which contribute to a positive outlook for the company’s future performance. Additionally, the stock’s valuation, while higher than its peers, is justified by anticipated strong performance driven by strategic initiatives, prompting Paris to raise the 12-month price target and maintain an OUTPERFORM rating.

In another report released today, Northland Securities also maintained a Buy rating on the stock with a $34.00 price target.

Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UTI in relation to earlier this year.

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