BMO downgrades Stride on ‘disappointing’ fiscal 2026 outlook

BMO Capital downgraded Stride (LRN) to Market Perform from Outperform with a price target of $108, down from $164. The firm cites the company’s “disappointing” fiscal 2026 outlook for the downgrade. While Stride’s fiscal Q2 results beat expectations, its first-time fiscal 2026 outlook was well below consensus estimates, with management citing a botched platform rollout leading to higher than expected student withdrawals, the analyst tells investors in a research note. BMO says the company is also limiting in-year enrollment growth to mitigate future issues. As fall enrollments are the key driver for Stride’s fiscal year results, investors may have to wait until next fall for another catalyst. contends BMO.