Barrington analyst Alexander Paris reiterated a Buy rating on Stride today and set a price target of $185.00.
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Alexander Paris has given his Buy rating due to a combination of factors that highlight Stride’s strong financial performance and strategic initiatives. The company’s recent quarterly results surpassed expectations, with significant increases in revenue, adjusted EBITDA, and EPS, indicating robust operational efficiency and growth. Enrollment figures also showed a healthy rise, driven by both General Education and Career Learning programs, which suggests a strong demand for Stride’s offerings.
Furthermore, Stride’s strategic partnership with new schools, such as the Destinations Career Academy of New Mexico, positions the company well for future growth despite the recent contract termination with Gallup-McKinley County Schools. Although there is a legal complaint against Stride, Paris views it as a temporary distraction and believes the company has a strong defense. The current market conditions, combined with Stride’s potential for growth in the school choice movement, make it an attractive investment opportunity, justifying the reiterated OUTPERFORM rating and the increased price target.