McGraw Hill, Inc. (MH) has received a new Buy rating, initiated by Goldman Sachs analyst, George Tong.
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George Tong has given his Buy rating due to a combination of factors that highlight McGraw Hill’s strategic positioning and growth potential. The company is undergoing a significant digital transformation, with a substantial increase in its digital revenue mix, which is expected to enhance customer loyalty and revenue predictability. This shift towards digital solutions is creating a robust ecosystem for educational content, leveraging AI to benefit both learners and instructors.
Additionally, McGraw Hill operates within a resilient and expanding educational information solutions industry, supported by trends such as the advancement of learning technologies and personalized learning. The company is poised for revenue growth through improved K-12 capture rates and increased adoption of its Inclusive Access and Evergreen models in higher education. As McGraw Hill continues to enhance its digital offerings and improve its financial leverage, it is anticipated that its valuation will rise, aligning more closely with its industry peers.
In another report released today, BMO Capital also initiated coverage with a Buy rating on the stock with a $24.00 price target.