LINC Stock Forecast & Price Target

Lincoln Educational Services Corp has demonstrated a substantial revenue increase of 17.2% year-over-year, reaching $117.7 million in the fourth quarter, primarily driven by a strong 13.7% growth in average student population and tuition increases. The company reported significant financial improvements, with adjusted EBITDA climbing to $25.3 million, reflecting a 21.5% margin despite an increase in SG&A expenses. Additionally, projections for 2027 indicate a robust growth trajectory, with expected revenues of $550 million and adjusted EBITDA margins scaling to 16.4%, highlighting the company's potential for continued expansion within its core Campus Operations segment.

Lincoln Educational Services Corp reported a 5.0% decline in adjusted net income for the fourth quarter, dropping to $9.5 million, alongside a significant 20.6% decrease in revenue, which fell to $0.4 million from $2.1 million year-over-year. Despite strong operational execution and industry conditions, the company’s valuation, trading at less than 9x EV/CY25 EBITDA, remains notably below the peer group average of 12x. Furthermore, concerns regarding increasing regulatory scrutiny on the for-profit education sector and dependency on Title IV funding, which constituted 81% of revenue, contribute to a negative outlook for the company's financial stability.