Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Truist Securities initiated coverage on Phoenix Education Partners (NYSE:PXED) with a Hold rating and a price target of $38.00 on Monday, slightly above the current trading price of $36.95. According to InvestingPro data, the company appears undervalued with a Fair Value estimate suggesting potential upside.
The research firm cited perceived risks to the company’s target mid-single-digit enrollment compound annual growth rate (CAGR), given its high exposure to online business and information technology degrees.
Truist Securities described online business and IT degrees as "the most competitive segment of working adult education," which factored into its neutral stance on the stock.
The firm acknowledged some positive aspects of Phoenix Education Partners’ profile, including its potential for future capital return and "a favorable industry regulatory backdrop."
Phoenix Education Partners is a recent IPO that currently trades at a steep discount to online university peers and has limited liquidity, with approximately 85% of the company still owned by private equity, according to Truist Securities. The company’s current ratio of 1.98 indicates its liquid assets exceed short-term obligations, a positive sign highlighted in InvestingPro analysis, which offers several more insights on this education stock.
In other recent news, Phoenix Education Partners announced the successful completion of its initial public offering, with 4,250,000 common stock shares priced at $32 each. The IPO raised approximately $136 million before deductions, with shares trading on the New York Stock Exchange. This development comes as several investment firms initiated coverage on the company. Morgan Stanley gave Phoenix Education Partners an Overweight rating with a $45 price target, highlighting the company’s academic reorganization efforts. BMO Capital also initiated coverage with an Outperform rating and the same price target of $45, emphasizing the University of Phoenix’s focus on working adult education. Jefferies provided a Buy rating and a $46 price target, citing the company’s attractive valuation compared to peers. Meanwhile, Goldman Sachs offered a Neutral rating with a $42 price target, noting the university’s commitment to flexible and affordable degree programs. These ratings reflect varied analyst perspectives as Phoenix Education Partners returns to the public market.
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