Analyst Mauricio Cepeda of Morgan Stanley maintained a Hold rating on Laureate Education, boosting the price target to $32.00.
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Mauricio Cepeda has given his Hold rating due to a combination of factors impacting Laureate Education’s stock. The company’s earnings revisions and consistent results are positive, but the stock is currently trading at a valuation that is two standard deviations higher than its two-year historical average. This valuation is in line with other US for-profit education companies but significantly higher than Brazilian peers, which justifies caution.
Additionally, while the price target for 2026 has been increased to $32 due to lower discount rates and slightly improved estimates, the potential for further appreciation appears limited. The stock’s current price-to-earnings ratio is slightly above its historical average, suggesting that the market has already priced in much of the anticipated growth. These factors contribute to the decision to maintain a Hold rating.
LAUR’s price has also changed dramatically for the past six months – from $19.140 to $29.370, which is a 53.45% increase.