Bullish indicating open at $55-$60, IPO prices at $37
On Monday, Rosenblatt Securities increased its price target on shares of Lincoln Educational Services (NASDAQ:LINC) to $25 from the previous $24, while reiterating a Buy rating on the stock. The stock is currently trading at $20.93, just shy of its 52-week high of $21.15, having delivered an impressive 72.32% return over the past year according to InvestingPro data.
Lincoln Educational Services has reported strong financial performance, with notable growth in both student enrollment and revenue. The company achieved 16.4% revenue growth in the last twelve months, maintaining impressive gross profit margins of 58.7%. The company’s recent success has been attributed to the expanding skills gap and the growing recognition of vocational education as a practical alternative to traditional four-year colleges.
Rosenblatt’s analysis suggests that Lincoln Educational is well-positioned to benefit from current economic trends, including a potential increase in domestic manufacturing and policy emphasis on reducing trade deficits. These factors may contribute to an acceleration in the company’s growth trajectory.
The new $25 price target is based on a roughly 12 times multiple of the company’s expected enterprise value to EBITDA ratio. Currently trading at an EV/EBITDA multiple of 28.21x and a P/E ratio of 65.28x, this valuation represents a premium compared to peers in the for-profit education sector. According to InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value. The premium is justified by Lincoln’s strategic focus on healthcare and skilled trades education, which are seen as particularly attractive market segments.
The firm’s positive outlook on Lincoln Educational Services is grounded in the company’s strategic direction and effective execution of its business plan, which is expected to continue driving growth and shareholder value. InvestingPro analysis reveals the company maintains a "GOOD" overall Financial Health Score of 2.73, with 14 additional exclusive ProTips available to subscribers through the platform’s comprehensive research reports.
In other recent news, Lincoln Educational Services reported a notable earnings beat for the first quarter of 2025, with earnings per share (EPS) of $0.06, significantly exceeding the forecast of -$0.02. The company also saw a 16% year-over-year increase in revenue, reaching $117.5 million. Lincoln Educational Services raised its full-year guidance, now projecting revenue between $485-$495 million, supported by a 20.9% increase in student starts and improved marketing efficiency. The company is expanding its operations with the launch of a hybrid teaching model and plans to open three new campuses in 2025. Despite these positive developments, the stock experienced a decline, indicating possible investor caution. The company plans to continue its growth strategy by opening new campuses and replicating high-demand programs. Lincoln Educational Services also reported an adjusted EBITDA of $10.6 million, a 56% increase from the previous year. These results underscore Lincoln’s strategic initiatives and strong operational performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.