UPDATE: Citi Upgrades Houghton Mifflin (HMHC) to Neutral

(updating comment)

Citi analyst Jason Bazinet upgraded Houghton Mifflin (NASDAQ: HMHC) from Sell to Neutral with a price target of $2.50 (from $1.00).

The analyst comments "Dramatic cost cuts means HMH can now generate robust FCF at far lower billings. On the other hand, we suspect the firm took these dramatic steps exactly because the revenue environment will likely remain challenging over the next 12-18 months. As such, the cadence of billings over the next 18 months (3Q20 to 4Q21) is going to be critical for the equity. Management seems to believe that 2021 billings will likely come in better than 2020. But, we don’t know how big 2020 billings will be since we still need to see 2H20 results. As such, we’re moving to the sidelines."

For an analyst ratings summary and ratings history on Houghton Mifflin click here. For more ratings news on Houghton Mifflin click here.

Shares of Houghton Mifflin closed at $2.50 yesterday.

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