Laureate Education initiated with a Buy at Jefferies on Friday

As previously reported on October 6, Jefferies initiated coverage of Laureate Education with a Buy rating and $20 price target. Laureate, the largest private market player in Mexico and Peru with a market share of 10% and 14%, respectively, operates five private universities with 50 campuses, the analyst tells investors. Given the expanding middle class and increasing uptake in higher education, the firm estimates a 17% compound annual EBITDA growth rate from 2022-2025 and 26% ROIC in 2023 for the “proven compounder,” the analyst tells investors.