Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education is benefiting from its strong portfolio of post-secondary institutions, particularly in high-demand markets such as healthcare and technology. Its diversified revenue streams, including online and campus-based education, as well as corporate partnerships, provide stability and potential for growth. Although recent enrollment declines may be a concern, the company's focus on expanding its corporate partnerships and international reach could mitigate these challenges.

Strategic Education is facing multiple challenges in its ANZ segment, including a record-high student visa refusal rate and additional scrutiny on student visas from key markets. Furthermore, its U.S. Higher Education segment, which makes up 69% of its revenue, is also facing enrollment declines and slower revenue growth, making it difficult for the company to achieve its previously stated targets. Despite a cheap valuation and attractive dividend yield, the uncertainties surrounding immigration policies and the potential for decreased interest in pursuing degrees among its core working adult student population make it difficult for us to have a positive outlook on the stock.