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BMO Capital Markets on Friday adjusted its outlook on Strategic Education (NASDAQ:), maintaining an Outperform rating on the stock while increasing its price target to $123 from $103.
This revision follows the company's release of its fourth quarter 2023 financial results, which exceeded expectations with strong revenue and margins across various segments.
The positive results of strategic education can be attributed to several factors. In particular, revenues in the US Higher Education (USHE) sector increased due to increased enrollment. Additionally, the Australia and New Zealand (ANZ) segment saw a recovery in pricing structures, while the Education Technology Services (ETS) segment benefited from continued momentum in Sophia Learning and Workforce Edge services.
Comprehensive growth across all segments also led to significant profit expansion. This turnaround in business results had a positive impact on Strategic Education's stock price, which rose significantly after the earnings release.
Analysts at BMO Capital Markets acknowledged the company's strong performance, saying:
“Our fourth quarter 2023 results exceeded expectations with broad-based revenue and margin strength across our segments.”
In light of these developments, BMO Capital revised its estimate for Strategic Education, leading to an increase in its price target. The new targets indicate optimism about the company's future financial performance and stock price potential.
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