Lake Street lifts Lincoln Educational stock target to $20

On Monday, Lake Street Capital Markets analyst Eric Martinuzzi increased the price target for Lincoln Educational Services (NASDAQ:LINC) shares to $20.00, up from the previous $16.00, while maintaining a Buy rating on the stock. The new target reflects growing confidence in LINC, which has delivered an impressive 65.2% return over the past year. Martinuzzi’s decision follows Lincoln Educational’s announcement of another quarter of strong revenue growth, attributed to an unexpected 16% growth in same-campus new student starts. According to InvestingPro data, the company’s revenue has grown 15.21% over the last twelve months.

Lincoln Educational’s third-quarter revenue exceeded forecasts, although adjusted EBITDA (AEBITDA) fell short due to the timing of marketing, books, and tools expenses. The company maintains a healthy financial position with a current ratio of 1.57, indicating strong liquidity. Nonetheless, the company has revised its full-year AEBITDA forecast upwards, anticipating operational efficiencies in the fourth quarter to offset the increased variable costs experienced in the third quarter. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 13 additional exclusive insights available to subscribers.

The company also reported a notable 12.5% growth in new student starts in the healthcare segment during the third quarter. This is a significant rebound from a 6.4% decline in the second quarter, which was affected by the timing of class starts.

In a recent earnings call, Lincoln Educational revealed plans to lease a new facility on Long Island, New York. The upcoming campus, expected to be operational by late 2026, will be approximately 65,000 square feet, slightly larger than the East Point, Georgia facility. It is designed to offer training in automotive, welding, HVAC, and electrical disciplines.

Martinuzzi expressed optimism about Lincoln Educational’s performance, citing impressive new student start numbers. The raised estimates for 2024 and 2025 led to the increased price target, reflecting confidence in the company’s future growth potential. With a market capitalization of $506 million and trading at a P/E ratio of 49.48, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, REE Automotive Ltd. has announced its upcoming annual general meeting of shareholders, scheduled for March 6, 2025. The meeting will be held at the company’s headquarters in Kibbutz Glil-Yam, Israel. This announcement was made as part of a report filed with the U.S. Securities and Exchange Commission (SEC), outlining the proposals to be voted upon and detailing voting procedures for shareholders. REE Automotive has provided a proxy statement and a form of proxy card for shareholders who wish to vote either in person or by proxy. These documents are attached to the SEC Form 6-K as Exhibits 99.1 and 99.2, respectively. Shareholders are encouraged to review the proxy statement to understand the proposals and their voting rights. The company has ensured that all relevant materials are available in compliance with SEC regulations.

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