Goldman Sachs Starts 2U, Inc. (TWOU) at Buy

Goldman Sachs initiates coverage on 2U, Inc. (NASDAQ: TWOU) with a Buy rating and a price target of $17, suggesting 30% upside.

Analyst Andre Benjamin said, "2U is a best-in-class provider of cloud-based hosting and additional services to help leading universities provide post-secondary degrees online. We forecast 29% sales CAGR through 2016, with 2U having penetrated only 5%-7% of its estimated revenue opportunity so far. The initial opportunity estimate focuses on US master’s degrees and does not include the potential upside from doctorate degrees, international expansion or undergrad programs. Valuation is attractive, with 2U trading at a 45% EV/Sales discount to SaaS comps with similar growth."

For an analyst ratings summary and ratings history on 2U, Inc. click here. For more ratings news on 2U, Inc. click here.

Shares of 2U, Inc. closed at $13.10 yesterday.

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