Strategic Education price target lowered to $99 from $103 at BofA

BofA analyst Heather Balsky lowered the firm’s price target on Strategic Education to $99 from $103 and keeps a Neutral rating on the shares. The firm highlights in a research note on Friday that the company’s 24c Q1 EPS was above its/Street’s estimates of 22c. Management reiterated 2023 guidance for 5% sales growth and at most 3% operating cost growth. The beat to BofA’s view was on a higher EBITDA margin. The firm remains on the sidelines as it thinks valuation at 23-times 2024 price-to-earnings largely prices in its strong 2023-2024 earnings growth potential, which is benefiting from an ongoing post-COVID recovery, strength at its alternative online and corporate programs, and leverage on a high fixed cost base.