Alexander Paris, an analyst from Barrington, reiterated the Buy rating on Perdoceo Education (PRDO – Research Report). The associated price target is $23.00.
Alexander Paris has issued a Buy rating for Perdoceo Education based on several key factors. The company’s third quarter financial results exceeded expectations and its full-year guidance was raised. Revenue for the third quarter saw a 6.8% increase to $179.9 million, primarily driven by revenue growth at Colorado Technical University and the recent acquisition of Coding Dojo. Adjusted operating income saw a substantial increase of 22.1% to $47.2 million, surpassing Paris’ estimate and management’s guidance.
Furthermore, management’s full-year 2023 guidance has been elevated to a range of $146.1-149.1 million, exceeding its previous guidance and Paris’ estimate for operating income. Adjusted diluted EPS, which excludes amortization of intangibles, rose significantly by 64.1% to $0.64, beating both Paris’ estimate and management’s guidance. The company’s shares, which have risen 33% YTD, are trading at a significant discount to its postsecondary education peer group average. Considering the positive impact of recent acquisitions, the company’s impressive cash reserves with no long-term debt, and its attractive valuation, Paris has reiterated his Outperform rating and upped his 12-month price target to $23.
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Perdoceo Education (PRDO) Company Description:
Perdoceo Education Corp. engages in the provision of educational services. It operates through Colorado Technical University (CTU) and American InterContinental University (AIU) segments. The CTU segment offers academic programs in the disciplines of business studies, nursing, computer science, engineering, information systems and technology, cybersecurity, and healthcare management. The AIU segment provides academic programs in the disciplines of business studies, information technologies, education, and criminal justice. The company was founded by John M. Larson on January 5, 1994 and is headquartered in Schaumburg, IL.
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