Gold prices cool after hitting over 2-week high on Fed independence fears
Investing.com - JPMorgan initiated coverage on McGraw Hill (NYSE:MH) with an Overweight rating and a price target of $21.00 on Monday. The target represents significant upside potential from the current trading price of $13.35, though InvestingPro analysis suggests the stock is currently fairly valued.
The firm identified McGraw Hill as a leading provider of education solutions across K-12, higher education, and professional markets, noting the company’s transformation into a primarily digital publishing business. This transformation has helped maintain impressive gross profit margins of 80.1% and drive revenue growth of 6.7% over the last twelve months.
JPMorgan highlighted McGraw Hill’s use of real-time data analytics to improve learning outcomes, which combined with product innovation, drives strong customer retention and market share gains.
The firm pointed to McGraw Hill’s significant recurring revenue and continuous digitization as factors creating strong visibility into future top-line growth, operating leverage, and cash generation that should support net debt reduction.
JPMorgan stated that McGraw Hill is trading at a discount to publishing and IDA peers, providing what it considers an attractive entry point, and expects the stock can re-rate higher as management executes on its growth strategy and reduces leverage.
In other recent news, McGraw Hill reported first-quarter fiscal 2026 results that exceeded revenue expectations, with total revenue reaching $535.7 million, marking a 2.4% increase from the previous year. The growth was primarily driven by strong digital and recurring revenue. In addition to the earnings announcement, Goldman Sachs initiated coverage on McGraw Hill with a Buy rating and set a price target of $27.00. The firm noted McGraw Hill’s ongoing digital transformation, highlighting that digital revenue has grown from 35% in fiscal 2015 to approximately 65% currently. Goldman Sachs expects this digital revenue to surpass 75% in the long term. These developments reflect McGraw Hill’s strategic focus on digital growth, which has been a key factor in its recent financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.