
Strayer Education (STRA) Stock Forecast & Price Target
Strayer Education (STRA) Analyst Ratings
Bulls say
Strategic Education is facing short-term challenges due to the impact of the COVID-19 pandemic on its international enrollment numbers. However, this is expected to be temporary and the company's long-term growth outlook remains solid, with a five-year notional model projecting annual revenue growth of 4-6% and 200 bps of adjusted operating margin expansion from 2023 to 2028. The company's strategy of investing in high-demand job-readiness programs, such as its US Healthcare programs, provides a positive read-through for its subsidiaries Capella and Torrens and supports its long-term growth prospects. Additionally, the company's share repurchase program and attractive dividend yield make it an appealing investment option in the education sector.
Bears say
Strategic Education is facing significant challenges in its Australia/New Zealand segment due to shifting immigration policies and increased scrutiny on student visas. This will likely impact the company's growth in that region and may limit potential revenue and enrollment increases. Additionally, the company's enrollment declines at Strayer University and difficult comps in the Education Technology Services segment create uncertainty and may hinder the company's ability to meet its growth targets. While the company's valuation is attractive, these factors lead me to rate STRA shares as Hold.
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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