Adtalem Global should be bought on weakness after short report, says Baird

Baird analyst Jeffrey Meuler recommends buying Adtalem Global Education with shares down following a Safkhet short report and with Adtalem pulling forward its results release to after market close on Wednesday. While Adtalem operates in a highly regulated sector, the firm says it believed regulatory/accreditation risks detailed were largely not new, save for a recent Walden investigation for which details are limited. Baird thinks regulatory risks are more manageable than the report suggests, with potential political cycle mitigation. It considers Adtalem’s fundamental outlook positive and believes valuation is attractive. The firm has an Outperform rating on the shares with a price target of $65.