Needham & Company Starts 2U, Inc. (TWOU) at Buy

Needham & Company analyst Ryan MacDonald initiates coverage on 2U, Inc. (NASDAQ: TWOU) with a Buy rating and a price target of $80.00.

The analyst commented, "We are initiating coverage of 2U (TWOU) with a Buy rating and 12-month price target of $80. 2U is a leading education technology company that combines a cloud-based software platform and services to help bring university partners into the digital age via online graduate degree and short course programs. In our view, 2U has established itself as a differentiated market leader in the graduate segment of the higher education market and is poised to capture additional share as demand for online programs remains strong. With expected acceleration of DGP launch cadences and continued scaling of the short course segment, we believe 2U is capable of delivering 30%+ annual revenue growth through FY20. Given the company’s current discounted EV/revenue multiple of 5.5x our FY19 estimate, we believe the shares are attractive."

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 $64.57 yesterday.

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