McGraw Hill initiated with an Outperform at Macquarie

Macquarie initiated coverage of McGraw Hill (MH) with an Outperform rating and $19 price target As “a leading global provider” of K-12, higher education, and professional learning solutions, the firm believes McGraw Hill has a large market opportunity, deep competitive moat and recession-resilient revenue streams, the analyst tells investors. In addition, the valuation “looks attractive based on peer comparisons,” the analyst argues. Investors may wonder why shares carry “such a large discount,” but the firm thinks this is because the market “may be overly focused” on guidance for lower year-over-year revenue in FY26.