Instructure price target lowered to $28 from $31 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Instructure (INST) to $28 from $31 and keeps an Overweight rating on the shares. While the firm’s fundamental estimates are unchanged, it has updated valuation multiples to reflect compression in the Education Software peer group, noting that revenue and EBITDA multiples are down low-double digits on average since last earnings. Among the group, the firm says it favors Docebo (DCBO) and Coursera (COUR) as it sees them with “the cleanest stories” and best likelihood for positive estimate revisions, which at odds with their discounted valuations.