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Investing.com - Rothschild Redburn has initiated coverage on McGraw Hill (NYSE:MH) with a Buy rating and a price target of $28.60, representing a potential 115% upside from current levels. The stock currently trades near its 52-week low of $12.55, while maintaining impressive gross profit margins of 80.11%.
The firm identifies McGraw Hill as a market leader in providing information services to the education sector, which has experienced significant digital transformation in recent years. According to InvestingPro data, the company has demonstrated solid revenue growth of 6.65% over the last twelve months.
Rothschild Redburn notes that McGraw Hill’s horizontal integration across the entire education lifecycle, combined with its focused go-to-market strategy and data-oriented value proposition, has enabled the company to consistently gain market share from competitors.
The research firm expects McGraw Hill’s valuation could see a "material rerating" as its track record as a public company develops and as stock liquidity increases.
The $28.60 price target suggests substantial growth potential for the education services provider, which has positioned itself at the forefront of the digitally transforming education sector.
In other recent news, McGraw Hill has been the focus of several analyst reports. Deutsche Bank initiated coverage on McGraw Hill with a Buy rating, highlighting the company’s potential in AI and setting a price target of $18.00. BMO Capital also began coverage, giving McGraw Hill an Outperform rating and a higher price target of $24.00. Stifel joined with a Buy rating, noting McGraw Hill’s successful transition to a digital platform and assigning a $19.00 price target. Baird initiated coverage with an Outperform rating, valuing the company’s fiscal 2027 and 2028 estimated earnings at attractive multiples and setting a price target of $21.00. In contrast, UBS took a more cautious approach, starting coverage with a Neutral rating and a $15.00 price target, citing challenges in market share gains and execution in a difficult market environment. These developments reflect varied analyst perspectives on McGraw Hill’s positioning and future prospects.
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