
Strayer Education (STRA) Stock Forecast & Price Target
Strayer Education (STRA) Analyst Ratings
Bulls say
Strategic Education is facing headwinds in achieving its notional model due to recent enrollment declines at Strayer University, difficult comps in the ETS segment, and continued uncertainty on immigration policy in Australia. However, with a discounted valuation of 5.0x and 4.4x of 2026 and 2027 adjusted EBITDA estimates and a secure dividend yield of 3.3%, the stock still remains a good investment with potential upside from share repurchases and growth in non-degree certificate and degree programs through its subsidiaries.
Bears say
Strategic Education is facing several headwinds, including slower enrollment growth in ANZ due to visa processing delays and declining US enrollment, likely exacerbated by a disproportionately high marketing budget for Capella University and increased competition in the postsecondary education market. Despite management's target for operating margin expansion, declining enrollment and weaker-than-expected financial results make it unlikely that the company will meet this target, casting doubt on the long-term sustainability of its revenue and earnings growth. Additionally, with the stock currently trading at a significant discount to its historical and industry average multiples, it is clear that the market shares this negative sentiment towards the company.
This aggregate rating is based on analysts' research of Strayer Education and is not a guaranteed prediction by Public.com or investment advice.
Strayer Education (STRA) Analyst Forecast & Price Prediction
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