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Investing.com - Truist Securities raised its price target on Huron Consulting Group (NASDAQ:HURN) to $26.00 from $24.00 on Friday, while maintaining a Buy rating on the stock. This aligns with the broader analyst sentiment, as InvestingPro data shows a strong consensus recommendation of 1.2, with analyst targets suggesting approximately 10% upside potential from the current price of $161.77.
The price target increase reflects Truist’s decision to roll forward to its 2027 estimates and apply a higher EV/EBITDA multiple of 15x, up from the previous 13x multiple. Notably, Huron’s current EV/EBITDA ratio stands at 15.48x, with the company generating $205.57 million in EBITDA over the last twelve months.
Truist expressed high conviction in accelerating growth for Huron and expects multiple expansion, noting this pattern has occurred when performance improvement projects deliver superior growth. InvestingPro data supports this growth narrative, showing Huron’s revenue increased by 12.67% over the last twelve months, with a PEG ratio of 0.75 indicating the stock may be undervalued relative to its growth prospects.
The firm’s bull case envisions 15% revenue growth in 2026/2027 driven by new performance improvement projects with approximately 16% EBITDA margin, compared to the consensus expectation of 10% revenue CAGR and 15.4% EBITDA margin.
Using a 15x EV/EBITDA multiple on Truist’s published 2027 estimates, which remains below the pre-pandemic multiple of approximately 18x, equates to a $240 share price, implying 48% upside potential.
In other recent news, Huron Consulting Group Inc. reported strong financial results for the third quarter of 2025, exceeding analyst expectations. The company achieved an adjusted earnings per share of $2.10, surpassing the forecasted $1.88. Additionally, Huron’s revenue reached $432.4 million, outpacing the anticipated $418.13 million. In a strategic move, Huron announced the acquisition of the payor consulting services division from AXIOM Systems. This acquisition brings approximately 40 AXIOM team members to Huron, enhancing its capabilities in the healthcare payor sector. Although the financial terms of the transaction were not disclosed, this expansion aligns with Huron’s growth strategy. These developments highlight Huron’s ongoing efforts to strengthen its position in the healthcare industry.
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