Universal Technical Institute stock rating reiterated by Truist Securities

Published 07/08/2025, 15:38
Universal Technical Institute stock rating reiterated by Truist Securities

Investing.com - Truist Securities has reiterated its Buy rating and $40.00 price target on Universal Technical Institute (NYSE:UTI), despite shares facing pressure following the company’s fiscal third-quarter earnings report. The stock, currently trading at $28.50, has delivered an impressive 97.52% return over the past year, according to InvestingPro data.

The education provider reported in-line F3Q revenues and exceeded expectations on EBITDA, with the company maintaining a healthy 56.13% gross profit margin. Despite these results, UTI shares declined after the earnings announcement. InvestingPro analysis shows the company maintains a GREAT financial health score, with particularly strong momentum and growth metrics.

Truist Securities identified three main factors contributing to the stock’s pressure: an unexpected decline in new student starts (though primarily attributed to timing issues), potential increased margin dilution in fiscal year 2026 due to Concorde growth investments, and elevated investor expectations following multiple quarters of significant earnings beats.

The research firm maintains its positive outlook on UTI, expecting fourth-quarter new student starts to improve. Truist believes investors will ultimately look beyond the expansion-driven margin dilution anticipated in FY26.

Universal Technical Institute currently maintains "the strongest new start growth among public companies," according to Truist Securities’ analysis, supporting the firm’s continued Buy recommendation.

In other recent news, Universal Technical Institute (UTI) reported its financial results for Q3 2025, showcasing stronger-than-expected performance. The company’s earnings per share (EPS) came in at $0.19, surpassing the analysts’ forecast of $0.11. Additionally, UTI’s revenue reached $204.3 million, exceeding the anticipated $200.01 million. These results were well-received by investors, as indicated by the positive reaction in after-hours trading. The earnings and revenue figures highlight UTI’s financial strength and operational efficiency during this period. While the company has not announced any mergers, the financial results alone have garnered significant attention. There have been no recent analyst upgrades or downgrades reported for UTI. These developments reflect the company’s solid performance and provide insights into its current market standing.

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