Rosenblatt raises Lincoln Educational stock target to $24

On Monday, Rosenblatt Securities adjusted its outlook on Lincoln Educational Services (NASDAQ:LINC), increasing the price target from $20.00 to $24.00, while reiterating a Buy rating on the stock. The firm’s analyst highlighted Lincoln’s performance and industry position, stating that despite the company’s strong execution and positive industry trends, its shares were trading at a valuation below that of its peers. This assessment aligns with the company’s impressive 65.2% return over the past year, according to InvestingPro data.

Lincoln Educational Services has recently reported another robust quarter, prompting Rosenblatt to strengthen its stance on the stock’s potential. The analyst’s assessment suggests that Lincoln’s shares are undervalued, trading at less than 9 times its expected calendar year 2025 earnings before interest, taxes, depreciation, and amortization (EV/CY25 EBITDA), compared to a 12 times multiple of its peer group. The company’s current EV/EBITDA ratio stands at 27.16x, with revenue growing at 15.21% over the last twelve months. For deeper insights into Lincoln’s valuation metrics and 13 additional ProTips, consider exploring InvestingPro.

The revised price target of $24.00 is based on the expectation that Lincoln Educational Services’ stock will align with the valuation multiples of its industry counterparts. The analyst’s comments reflect confidence in the company’s ability to maintain its strong market performance and potentially achieve a valuation that mirrors the broader peer group. With a market capitalization of $581.89 million and a healthy current ratio of 1.57, the company maintains a solid financial foundation.

Lincoln Educational Services, which specializes in providing diversified career-oriented post-secondary education, has been experiencing favorable conditions within its industry that have contributed to its financial success. The increase in the price target by Rosenblatt signifies a belief in the continued growth and financial health of the company.

The new price target represents a significant increase and serves as an indicator of Rosenblatt’s positive outlook on Lincoln Educational Services’ stock. Investors and market watchers will be keeping an eye on the company’s performance to see if it achieves the alignment with its peer group’s valuation as anticipated by Rosenblatt Securities.

In other recent news, Lincoln Educational Services reported impressive financial results for the fourth quarter of 2024, surpassing analysts’ expectations. The company posted earnings per share of $0.3056, exceeding the forecasted $0.26, and achieved revenue of $119.4 million, which was above the anticipated $111.46 million. Lincoln Educational’s full-year revenue for 2024 grew by 16.4% to $440.1 million, with adjusted EBITDA increasing by 60% year-over-year to $42.3 million. The company ended the year with nearly $60 million in cash and no debt, highlighting its strong financial position. Lincoln Educational also announced plans to expand its hybrid teaching model and open new campuses in 2025, including locations in Levittown, Nashville, and Houston. The company’s strategic initiatives and growth prospects were positively received, with analysts from firms such as Barrington Research and Lake Street showing interest in its developments. Looking ahead, Lincoln Educational projects 2025 revenue to be between $480 million and $490 million, with an adjusted EBITDA of $55 million to $60 million, reflecting its commitment to continued expansion and program enhancement.

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