Truist raises Huron Consulting stock target to $165, maintains Buy

Published 26/02/2025, 15:24
Truist raises Huron Consulting stock target to $165, maintains Buy

Wednesday, Truist Securities adjusted its outlook on Huron Consulting Group (NASDAQ:HURN), increasing the price target to $165 from the previous $140 while maintaining a Buy rating. The decision follows Huron’s reported results and guidance for 2025, which exceeded consensus expectations. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, with the company maintaining a strong "Buy" consensus recommendation of 1.2 out of 5.

The Truist Securities analyst highlighted that recent regulatory changes are expected to boost demand for Huron’s services. The firm’s expertise in healthcare and education is deemed particularly strong, and these sectors could benefit from shifts in regulatory policy that originated during the Trump administration. This positive outlook is supported by Huron’s solid financial health, with InvestingPro analysis showing a "GOOD" overall financial score and an impressive Piotroski Score of 8, indicating strong operational efficiency.

According to Truist Securities, Huron Consulting Group’s valuation continues to be appealing, citing that the stock is currently trading at a forward EV/EBITDA multiple of approximately 12x, which is below the five-year average of around 14x. Current data from InvestingPro shows an EV/EBITDA of 14.21x, with the stock trading near its Fair Value. The company’s solid 7.51% revenue growth and market capitalization of $2.04 billion, alongside its performance, underpins the analyst’s optimistic stance.

The analyst expressed confidence in Huron’s market position, stating, "We remain buyers of Huron Consulting Group (HURN) after reporting upside results and ’25 guidance above consensus expectations." The raised price target to $165 reflects Truist’s revised estimates based on the company’s potential growth.

Huron Consulting Group has not publicly responded to the updated price target and maintained Buy rating. The market will continue to observe how the company’s stock performs in light of Truist Securities’ updated expectations and the broader market conditions.

In other recent news, Huron Consulting Group has reported a strong fourth quarter for 2024, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.90, exceeding the forecasted $1.52, and generated revenue of $399.31 million, which was higher than the anticipated $379.99 million. Huron’s annual revenues reached a record $1.49 billion in 2024, marking a 9.1% increase from the previous year. For 2025, Huron has provided guidance with expected revenue growth of 9% at the midpoint and an adjusted EBITDA margin between 14% and 14.5%.

Benchmark analysts have responded to Huron’s robust performance by raising the company’s stock target to $165 from $140, maintaining a Buy rating. The analysts cited Huron’s strong earnings and favorable macroeconomic environment, especially in the healthcare sector, as key factors for the upgrade. Additionally, Huron’s free cash flow increased significantly in 2024, allowing the company to pay down debt, repurchase shares, and invest in Axia Consulting. The company projects further growth, with anticipated revenue between $1.58 billion and $1.66 billion for 2025.

Huron’s management has scheduled an Investor Day for March 25th to provide further insights into the company’s strategic plan and financial targets for the coming years. The company’s strategic acquisitions and expansion into digital and managed services have strengthened its market position, despite challenges in the healthcare and education sectors. Analysts at Benchmark highlighted potential benefits for Huron from changes in clinical reimbursement models and adjustments to NIH funding for research.

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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