Jefferies analyst Pedro Baptista maintained a Buy rating on Laureate Education (LAUR – Research Report) on February 26 and set a price target of $26.00.
Pedro Baptista has given his Buy rating due to a combination of factors that highlight Laureate Education’s strong growth potential and strategic initiatives. The company has demonstrated robust growth between 2019 and 2024, achieving high single-digit revenue increases without expanding its campus footprint. Now, with plans to add four new campuses in Mexico and Peru, Laureate is poised to continue this growth trajectory, supported by a capital expenditure to revenue ratio expected to normalize around 5%.
Furthermore, Laureate’s expansion into medical and technical education, along with its premium and value brand strategies in key markets, positions it well for future growth. The company’s margin expansion efforts have resulted in a historic high EBITDA margin of 30%, with further improvements anticipated. Additionally, Laureate’s effective capital allocation strategy, which includes significant stock buybacks and debt reduction, underscores its commitment to returning value to shareholders. These factors collectively support Baptista’s positive outlook on Laureate Education’s stock.
In another report released on February 21, BMO Capital also maintained a Buy rating on the stock with a $23.00 price target.