2U price target lowered to 75c from $1 at Morgan Stanley

Morgan Stanley analyst Josh Baer lowered the firm’s price target on 2U (TWOU) to 75c from $1 and keeps an Equal Weight rating on the shares. While the firm’s fundamental estimates are unchanged, it has updated valuation multiples to reflect compression in the Education Software peer group, noting that revenue and EBITDA multiples are down low-double digits on average since last earnings. Among the group, the firm says it favors Docebo (DCBO) and Coursera (COUR) as it sees them with “the cleanest stories” and best likelihood for positive estimate revisions, which at odds with their discounted valuations.