William Blair analyst Stephen Sheldon has maintained their bullish stance on LRN stock, giving a Buy rating on October 23.
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Stephen Sheldon’s rating is based on a combination of factors including Stride’s recent quarterly performance and future guidance. Despite the company’s quarterly revenue and adjusted EBITDA slightly exceeding consensus estimates, the fiscal 2026 guidance was notably weaker than anticipated, primarily due to technical execution issues. These issues, particularly with the new learning management system and student information system, led to a significant drop in expected enrollment growth. However, Sheldon believes the market reaction to the guidance was overly negative, as the company has shown progress in addressing the most critical technical problems.
Stride’s management has a track record of meeting and surpassing investor expectations, which provides some confidence in their ability to resolve the current challenges. Although the stock may experience some volatility in the near term, the long-term potential remains intact, justifying the Buy rating. The company’s ability to improve its platform and regain enrollment growth could offer upside potential, making it an attractive investment opportunity despite the current setbacks.
Sheldon covers the Technology sector, focusing on stocks such as Par Technology, AppFolio, and Alarm. According to TipRanks, Sheldon has an average return of 3.3% and a 46.02% success rate on recommended stocks.
In another report released on October 23, Canaccord Genuity also maintained a Buy rating on the stock with a $175.00 price target.