Canaccord Genuity reiterates Buy rating on Stride stock amid enrollment growth

Published 18/08/2025, 11:06
Canaccord Genuity reiterates Buy rating on Stride stock amid enrollment growth

Investing.com - Canaccord Genuity has reiterated its Buy rating and $165.00 price target on Stride Inc. (NYSE:LRN), citing strong enrollment growth and favorable operating conditions. The company’s strong financial performance is reflected in its impressive 94.1% stock return over the past year and 54.13% year-to-date gains, with shares currently trading near their 52-week high of $162.30.

The research firm highlighted comments from Stride’s CEO James Rhyu during a fireside chat at Canaccord’s 45th annual Growth Conference, where they discussed industry tailwinds and operational decisions that have driven robust enrollment growth over the past year. According to InvestingPro data, this growth has translated into strong financial metrics, with revenue growing 17.9% and the company maintaining excellent liquidity with a current ratio of 5.39.

Canaccord noted that pandemic-driven awareness of online learning programs has benefited Stride, with the company successfully converting increased demand into applications and enrolled students through improved marketing strategies, resulting in accelerated enrollment growth over eight consecutive quarters.

Stride broke from tradition by providing initial Q1 2026 enrollment guidance of 10-15% year-over-year growth, which exceeds consensus expectations. The company indicated that while it’s still early, application volumes are strong and this trend is expected to continue as the school year approaches.

Shares of Stride have risen 20% since the company reported strong fiscal Q4 results and an encouraging outlook in early August, though Canaccord still considers the valuation "quite reasonable" given the favorable operating environment and consistent execution driving growth and profitability. InvestingPro analysis shows the stock is currently trading at Fair Value, with multiple positive indicators including strong cash flows and solid financial health scores. InvestingPro subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into Stride’s investment potential.

In other recent news, Stride Inc. reported impressive financial results for the fourth quarter of 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $2.29, surpassing the forecasted $1.76. Additionally, Stride’s revenue outperformed projections, reaching $653.6 million against the anticipated $621.7 million. These results highlight the company’s strong performance during this period. Despite the positive earnings report, Stride’s stock experienced a slight decline, though it saw a minor increase in after-hours trading. These developments reflect the latest updates on Stride Inc.’s financial standing.

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