McGraw Hill stock initiated with Outperform rating at BMO Capital

Published 18/08/2025, 08:18
McGraw Hill stock initiated with Outperform rating at BMO Capital

Investing.com - BMO Capital initiated coverage on McGraw Hill (NYSE:MH) with an Outperform rating and a price target of $24.00 on Monday, representing significant upside from the current price of $13.35. According to InvestingPro data, the stock is trading near its 52-week low of $12.55.

The research firm identified McGraw Hill as a leader in educational solutions spanning from preK-12 to higher education and professional learning segments.

BMO Capital noted that McGraw Hill should continue to leverage its scale and brand equity to maintain a competitive edge, particularly as the industry continues to migrate from print to digital formats.

The firm highlighted that while McGraw Hill has increased its market share, it still serves only a small portion of an estimated $14 billion total addressable market (TAM).

Despite fiscal year 2026 being projected as a lower K-12 adoption year, BMO Capital believes the market will rebound and recommends investors take advantage of the current share weakness.

In other recent news, McGraw Hill has garnered significant attention from several major financial firms. Goldman Sachs initiated coverage with a Buy rating and a price target of $27.00, emphasizing McGraw Hill’s digital transformation, with digital revenue currently at 65% and expected to exceed 75% in the long term. Stifel also rated McGraw Hill as a Buy, setting a price target of $19.00, acknowledging the company’s successful shift to a digital platform-based business model. JPMorgan provided an Overweight rating, with a price target of $21.00, highlighting McGraw Hill’s leadership in education solutions across various markets. Baird initiated coverage with an Outperform rating and a $21.00 price target, citing the company’s attractive valuation. UBS offered a more cautious perspective, initiating coverage with a Neutral rating and a $15.00 price target, pointing to the challenges McGraw Hill faces in gaining market share amid demographic and policy headwinds. These developments reflect a range of analyst perspectives on McGraw Hill’s current and future positioning in the educational sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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