In a report released today, Jeffrey Silber from BMO Capital reiterated a Buy rating on Adtalem Global Education (ATGE – Research Report), with a price target of $53.00.
Jeffrey Silber’s Buy rating for Adtalem Global Education is primarily based on a range of factors, including better-than-expected revenues, margin growth, and a return to enrollment growth. In the first quarter of 2024, Adtalem not only surpassed expectations but also experienced its first total enrollment growth in several quarters, which Silber believes will continue. Additionally, the management’s decision to modestly raise the guidance for FY2024 for revenues and adjusted EPS, coupled with the expectation of improving trends throughout the year, further solidified his confidence in the stock.
Silber’s rating is also influenced by the company’s regulatory developments and strategic focus. Despite a decline in Adtalem’s composite score due to goodwill from the Walden acquisition, the management’s proactive response and their expectation of this eventuality appeared to assuage any potential concerns. Furthermore, Adtalem’s strategic shift towards Medical/Healthcare, which is expected to outperform the broader industry, and the company’s resilience in the face of pandemic-related challenges, particularly in post-licensure programs, appear to have positively influenced Silber’s Buy rating for the stock.
According to TipRanks, Silber is a 5-star analyst with an average return of 12.4% and a 63.78% success rate. Silber covers the Financial sector, focusing on stocks such as S&P Global, Factset Research, and Moody’s.
In another report released today, Robert W. Baird also upgraded the stock to a Buy with a $55.00 price target.
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Adtalem Global Education (ATGE) Company Description:
Adtalem Global Education, Inc. engages in the provision of workforce solutions. It operates through the following segments: Medical and Healthcare, Financial Services and Business and Law. The Medical and Healthcare segment includes the operations of Ross University medical and veterinary schools, Chamberlain College of Nursing and Carrington. The Financial Services segment includes the operations of Association of Certified Anti-Money Laundering Specialistsm, Becker Professional Education and EduPristine. The Business and Law segment includes the operations of Adtalem Education of Brazil. Adtalem Global Education was founded by Dennis J. Keller and Ronald L. Taylor in 1973 and is headquartered in Chicago, IL.
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