In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Universal Technical Institute, with a price target of $36.00.
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Alexander Paris has given his Buy rating due to a combination of factors including the anticipated strong performance of Universal Technical Institute (UTI) in the upcoming quarters. The company’s strategic initiatives under its North Star Strategy are expected to drive significant growth, with a projected revenue compound annual growth rate of approximately 10% through the expansion of existing programs and the opening of new campuses. This growth strategy is likely to enhance UTI’s adjusted EBITDA margin to around 20% by fiscal year 2029.
Furthermore, despite the aggressive risk profile, the company’s stock is trading at a premium compared to its peers, reflecting investor confidence in its growth potential. The recent lifting of growth restrictions on the Concorde division is expected to accelerate program and campus expansions, potentially leading to greater revenue and earnings upside in the coming years. These factors contribute to Paris’s reiteration of an OUTPERFORM rating and a 12-month price target of $36, indicating a positive outlook for UTI’s stock performance.
Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UTI in relation to earlier this year.