McGraw Hill price target lowered to $22 from $25 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on McGraw Hill (MH) to $22 from $25 and keeps a Buy rating on the shares. The firm updated its forecasts to reflect stronger K-12 revenue growth in F2026 from market share gains and slower Global Professional growth in FY27-FY28 due to legacy product phase-outs, alongside slightly lower EBITDA margins from a higher mix of lower-margin K-12 and non-core revenue runoff, the analyst tells investors in a research note. The outlook remains positive given share gains in K-12 and Higher Education, rising capture rates outside CA, TX, and FL, expectations for a double-digit K-12 TAM rebound in FY27, and strong AI positioning supported by proprietary content, large-scale learner data, and adaptive learning technologies, Goldman adds.