In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Grand Canyon Education, with a price target of $230.00.
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Alexander Paris has given his Buy rating due to a combination of factors that reflect Grand Canyon Education’s strong financial performance and growth prospects. The company reported impressive second-quarter results, surpassing expectations with an 8.8% increase in revenue and a 15.2% rise in adjusted EBITDA. Additionally, the adjusted diluted EPS grew by 20.5%, exceeding both the consensus and the guidance range. These results highlight the company’s robust operational performance and its ability to deliver consistent growth.
Moreover, the company has demonstrated significant enrollment growth, with total enrollment in its university partners’ programs increasing by 10.3%. This marks the 11th consecutive quarter of year-over-year growth, indicating a sustained demand for its educational offerings. The management’s decision to raise full-year 2025 guidance for revenue and EPS further underscores their confidence in the company’s future performance. The stock is also trading at a discount compared to its Ed Tech peers, providing an attractive investment opportunity. Consequently, Paris reiterated the OUTPERFORM rating and raised the 12-month price target, reflecting a positive outlook for Grand Canyon Education.