Jeffrey Silber, an analyst from BMO Capital, maintained the Buy rating on Laureate Education (LAUR – Research Report). The associated price target is $15.00.
Jeffrey Silber has given Laureate Education a Buy rating due to a combination of factors. First off, Laureate Education reported an approximately in-line adjusted EBITDA quarter, despite the weakening Peruvian economy impacting enrollment trends. The Mexican new enrollments, which grew by 7% year over year, made up for some of the sluggish intake in Peru. This was aided by the performance of premium brands and a thriving Mexican economy. Additionally, the company has a plan to expand Mexican margins to 25% over the next few years.
On the other hand, while the Peruvian economy was weak, and the company had to revise its enrollment guidance towards the lower end, the management reaffirmed constant currency 2023 revenue and adjusted EBITDA guidance. This was possible due to the favorable enrollment mix in Mexico’s primary intake, which offset some of the enrollment headwinds in Peru. The company’s focus on higher education in Mexico and Peru, two countries with growing middle classes and increasing higher education participation rates, is also a contributing factor to Silber’s rating.
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Laureate Education (LAUR) Company Description:
Laureate Education, Inc. engages in the provision of higher educational services to undergraduate and graduate degree programs. It operates through the following segments: Online & Partnerships, Brazil, Mexico, Rest of the World, and Andean. The firm offers different fields of study including business, education, engineering, information technology, law, and medicine through Laureate International Universities network. The company was founded by Douglas L. Becker in 1989 and is headquartered in Baltimore, MD.
Read More on LAUR:
- Laureate Education sees 2023 revenue $1.457B-$1.465B, consensus $1.49B
- Laureate Education Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2023
- Laureate Education board declares special cash dividend of 70c per share
- Laureate Education reports Q3 EPS 23c vs. 19c last year
- Laureate Education Announces Date of Third Quarter 2023 Earnings Release and Conference Call
