2U Inc Receives a Rating Update from a Top Analyst

In a report released today, Brian Schwartz from Oppenheimer maintained a Buy rating on 2U Inc (NASDAQ: TWOU), with a price target of $91. The company’s shares closed yesterday at $82.09.

Schwartz noted:

“2U’s business delivered another strong quarter of results in 1Q:2018. The business momentum remains very solid with bullish management commentary on the short course performance plus the annual revenue target was raised above average and beyond the 1Q outperformance. On balance, the cash flow was disappointing mostly from higher one-time items (stock compensation, amortization of acquired intangibles, etc.), and the magnitude of the quarterly beats is moderating. Bottom Line: 2U is the most dominant and we believe best-positioned vendor for the future within higher education. The company has deep structural advantages, and many prestigious universities as referenceable partners to continue serving as a core competitive differentiator. While TWOU’s valuation currently reflects a meaningfully successful business trajectory over FTM, we remain long-term positive. Reiterate Outperform, $91 target.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 26.8% and a 79.2% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.

2U Inc has an analyst consensus of Strong Buy, with a price target consensus of $94.11.

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The company has a one-year high of $91 and a one-year low of $39.58. Currently, 2U Inc has an average volume of 514.4K.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock.

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2U, Inc. provides cloud-based software-as-a-service solutions for nonprofit colleges and universities to deliver education to qualified students. The company’s cloud-based SaaS platform solutions include online campus, an online learning platform that enables its clients to offer educational content together with instructor-led classes in a live, intimate, and engaging setting through proprietary Web-based and mobile applications; and content management system, which enables its clients to author, review, and deploy asynchronous content into their online programs. Its cloud-based SaaS platform solutions also comprise application processing portal that automates the online application process for prospective students of its client’s programs; and customer relationship management deployments, which serve as the data hub for scheduling, student acquisition, student application, faculty admissions review, enrollment and student support for each program. The company offers a suite of technology-enabled services, including content development, student acquisition, and state authorization services, as well as application advising, student and faculty support and in-program student field placements that support the lifecycle of a higher education program or course. 2U was founded by Christopher J. Paucek in April 2008 and is headquartered in Lanham, MD.