Election Impact: Analyst Eyes Potential Upside for Strategic Education with Republican Victory
Portfolio Pulse from Shivani Kumaresan
Truist Securities analyst Jasper Bibb upgraded Strategic Education Inc (NASDAQ:STRA) from Hold to Buy, raising the price target from $110 to $125, citing potential for enrollment growth, margin benefits, and a favorable political climate with a Republican victory. The analyst anticipates upside estimate revisions for 2024, noting strong enrollment growth and a conservative outlook that could see a 6%-12% upside to 2024 EPS consensus. A Trump win is seen as a catalyst for multiple expansion, with STRA's performance historically better during the Trump administration.
April 17, 2024 | 5:48 pm
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Strategic Education Inc upgraded by Truist Securities to Buy with a price target raised to $125, driven by enrollment growth, margin benefits, and potential political catalysts.
The upgrade and price target increase for STRA by Truist Securities are based on several positive factors including enrollment growth, margin expansion, and a favorable political climate. The anticipation of a Republican victory acting as a catalyst for multiple expansion further supports a positive outlook. The historical performance under the Trump administration compared to the Biden administration suggests a potential for stock appreciation in a similar political environment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100