UTI Stock Forecast & Price Target

Universal Technical Institute Inc. is projected to achieve a revenue compound annual growth rate (CAGR) of approximately 10% through its North Star Strategy, driven by same-store growth and the introduction of new programs and campuses. The company anticipates expanding its adjusted EBITDA margin from 14% in FY/24 to around 20% by FY/29, indicating improved operational efficiency and profitability. With a 29% year-to-date stock increase and trading at a premium to its postsecondary education peers, Universal Technical Institute reflects strong market performance and investor confidence in its future growth potential.

Universal Technical Institute Inc. is facing a negative outlook primarily due to a projected decline in adjusted EBITDA and GAAP EPS for FY/26, reflecting an adjusted EBITDA estimate of $115.1 million at a margin of 12.8%, down from $126.8 million at a margin of 15.3%. Additionally, the company's GAAP EPS estimate is being revised downward to $0.90, indicating a decrease of 13.5% year-over-year. The anticipated acceleration of strategic growth investments suggests that although revenue may increase in later years, immediate financial metrics for FY/26 and FY/27 will demonstrate significant declines.