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On Thursday, Truist Securities analyst Jasper Bibb updated his assessment of Universal Technical Institute (NYSE: NYSE:UTI), increasing the price target from $37.00 to $40.00. The firm maintained its Buy rating on the stock. The optimism appears well-founded, as UTI has delivered impressive returns of 141% over the past year and is currently trading at $35.32, near its 52-week high of $35.99. Bibb’s positive outlook follows recent investor meetings and a bell-ringing ceremony at the New York Stock Exchange, which took place earlier in the week.
The analyst reported positive investor sentiment towards the for-profit education sector, noting it as the most favorable in five years. Bibb also suggested a potential for approximately 5% additional upside to the company’s fiscal year 2025 EBITDA (earnings before interest, taxes, depreciation, and amortization) forecasts. The company has demonstrated solid fundamentals with revenue growth of 14.69% and maintains a "GREAT" overall financial health score according to InvestingPro analysis.
Bibb highlighted that the factors behind the minimal expected EBITDA growth for fiscal year 2026 are well-understood within the investor community. He expressed confidence that Universal Technical Institute would not be adversely affected by the proposed student loan changes in the House reconciliation bill.
The revised price target to $40 reflects a response to higher market multiples observed in the education sector. Truist’s evaluation suggests that Universal Technical Institute is well-positioned to navigate the current legislative environment and market conditions.
Investors and market watchers will likely monitor Universal Technical Institute’s performance closely to see if the company’s financial results align with Truist Securities’ projections and the optimistic sentiment conveyed by the firm.
In other recent news, Universal Technical Institute reported strong financial results for the second quarter of 2025, surpassing both earnings and revenue forecasts. The company’s earnings per share reached $0.21, significantly higher than the projected $0.12, while revenue increased to $207.4 million, exceeding the expected $196.52 million. This performance reflects a 12.6% year-over-year revenue growth, supported by a 21.4% rise in new student starts, indicating strong demand for the institute’s programs. Truist Securities responded to these positive results by raising its price target for Universal Technical Institute to $37.00 and reaffirming a Buy rating. The firm highlighted the company’s updated fiscal year 2025 guidance, suggesting potential for further upward revisions. Universal Technical Institute’s strategic initiatives, including program expansions and campus investments, are aimed at sustaining growth, despite anticipated heavy investments in the coming years. The company has set a fiscal 2025 revenue guidance of $825-$835 million and aims for an adjusted EBITDA between $124 million and $128 million. Analysts from Truist Securities noted that the company’s North Star strategy involves a period of higher capital investment, which may moderate EBITDA growth in fiscal years 2026 and 2027.
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