Analyst Jeffrey Silber from BMO Capital maintained a Buy rating on Laureate Education (LAUR – Research Report) and keeping the price target at $23.00.
Jeffrey Silber’s rating is based on several compelling factors that highlight Laureate Education’s potential for growth and value. Despite some concerns related to its exposure in Mexico and the indirect effects of tariffs, Silber believes that the company’s financial model and capital allocation strategy are well-suited for future expansion. The market seems to undervalue Laureate’s shares, particularly due to its non-U.S. exposure and unique business model.
Silber points to a robust growth outlook in Peru and Mexico, where the demand for postsecondary education is expected to surpass that in the U.S. due to lower penetration rates and minimal government involvement. This environment reduces competition from the public sector, allowing for significant growth driven by the private sector. Additionally, Laureate’s margin outlook is solid, with management focusing on expanding margins through operating leverage. The company’s premium brands in Mexico and Peru offer high returns on investment, with students typically able to repay tuition within a few years due to higher earnings premiums. These factors contribute to Silber’s positive outlook on Laureate Education’s stock.
Silber covers the Industrials sector, focusing on stocks such as First Advantage, ManpowerGroup, and Robert Half. According to TipRanks, Silber has an average return of 9.6% and a 60.73% success rate on recommended stocks.
In another report released on February 26, Jefferies also reiterated a Buy rating on the stock with a $26.00 price target.