Jeffrey Silber, an analyst from BMO Capital, has initiated a new Buy rating on McGraw Hill, Inc. (MH).
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Jeffrey Silber has given his Buy rating due to a combination of factors that highlight McGraw Hill’s strategic positioning and growth potential. The company is a leader in educational solutions, with a strong presence from preK-12 to higher education and professional learning. Its ability to leverage its scale and brand equity provides a competitive edge, especially as the industry shifts from print to digital formats.
McGraw Hill’s significant market share in the U.S. K-12 and higher education sectors, along with its focus on digital adoption, positions it well for future growth. Despite a projected downturn in FY2026 due to a smaller K-12 adoption cycle, Silber anticipates a strong recovery with a 6.1% CAGR in revenues from FY2026 to FY2028. The company’s valuation is considered attractive, trading at a discount compared to peers, and its continued market share gains, enrollment growth, and pricing strategies are expected to drive revenue growth and margin expansion.