LINC Stock Forecast & Price Target

Lincoln Educational Services Corp reported a significant increase in its average student population, reaching 11,920 in Q2, which represents a 22% year-over-year growth. Additionally, the company experienced a revenue increase of 13.2%, with the average revenue per student rising to $7,488, reflecting a modest growth of 0.5% year-over-year. Furthermore, management highlighted a robust 19.5% growth in student starts year-over-year, showcasing strong demand for their diverse educational programs.

Lincoln Educational Services Corp is experiencing significant challenges in its healthcare segment, particularly due to the exit of its Cosmetology program in Las Vegas and difficulties in enrolling new nursing students in New Jersey, which contribute to an overall lagging performance. The company's reported starts have declined sharply, with a 36% year-over-year decrease noted in the financial metrics without specific adjustments, indicating underlying issues in attracting new students. Additionally, the controversy surrounding its financial reporting has not only affected investor confidence but also caused a notable double-digit decline in stock price during intra-day trading.