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Investing.com - Freedom Capital Markets has raised its price target on Legacy Reserves (NYSE:LGCY) to $13.00 from $9.50 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently undervalued despite its strong 116% gain over the past year.
The revision follows Legacy Education’s fourth-quarter 2025 revenue of $18 million, representing a 40.8% year-over-year increase and exceeding Freedom Capital’s forecast of $17.2 million. The revenue growth was driven by robust organic demand and enrollment of 723 new healthcare students. The company’s trailing twelve-month revenue reached $64.2 million, with an impressive gross margin of 46.6%.
Despite the strong revenue performance, profitability fell short of expectations primarily due to increased administrative expenses. These higher costs were attributed to a combination of reserving, seasonal factors, and investment activities, resulting in a decline in adjusted EBITDA margin.
Freedom Capital noted that the October launch of new degree and certificate programs required upfront investments in staffing and infrastructure, which temporarily reduced short-term margins for the company.
Looking ahead to 2026, Freedom Capital expects a gradual rebound in margins as new student cohorts fill, TuitionFlex operations stabilize, and accreditation processes are completed, with projected revenue of $74 million.
In other recent news, Legacy Education Inc. has reported impressive financial results for the fourth quarter of 2025. The company achieved a significant revenue increase of 40.8% compared to the previous year, reaching $17.9 million. Additionally, Legacy Education’s net income rose by 27.6% to $1.2 million. Despite these strong financials, the market’s reaction was cautious. In related developments, there were no notable mergers or acquisitions reported. Analyst firms have not recently upgraded or downgraded Legacy Education’s stock. These updates reflect the latest developments surrounding Legacy Education Inc .
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