Truist Upgrades Strategic Education (STRA) to Buy, 'USHE Enrollment Growth To Unlock Significant Margin Leverage'

Truist Securities analyst Jasper Bibb upgraded Strategic Education (NASDAQ: STRA) from Hold to Buy with a price target of $125.00 (from $110.00).

The analyst comments "We are upgrading Strategic Education (STRA) to Buy from Hold and increasing our PT to $125 from $110. In our view, the sector is more attractive today given: (1) positive inflection in enrollment momentum; and (2) a stable/improving regulatory backdrop. Specific to STRA, we estimate U.S. Higher Ed (USHE) segment margins expanding off depressed levels could drive 6-12% upside to consensus '24 EPS and a 25-30% EPS CAGR over the next three years. We see an attractive entry point after shares have retreated 12% from the post-4Q earnings high (S&P down 1%)."

For an analyst ratings summary and ratings history on Strategic Education click here. For more ratings news on Strategic Education click here.

Shares of Strategic Education closed at $96.71 yesterday.

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