In a report released today, Alexander Paris from Barrington reiterated a Buy rating on 2U Inc (NASDAQ: TWOU), with a price target of $100. The company’s shares opened today at $80.06.
Paris commented:
“We would note that 2U’s projected growth rate is much higher at 43%/33% in 2018/2019, compared to an average of 23%/22% for the Ed Tech peer group and 23%/21% for the vertical‐focused SaaS peer group. Given 2U’s superior growth rate, revenue growth visibility/predictability and the size of its potential market, which is enhanced by the acquisition of GetSmarter (short courses) and its entry into the international graduate program market, we are reiterating our OUTPERFORM investment rating and 12‐month price target of $100, which assumes a 9.5x multiple on our forward revenue estimate a year from now.”
According to TipRanks.com, Paris is a 5-star analyst with an average return of 15.2% and a 57.5% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Capella Education Company.
2U Inc has an analyst consensus of Strong Buy, with a price target consensus of $99, a 23.7% upside from current levels. In a report released today, Oppenheimer also maintained a Buy rating on the stock with a $91 price target.
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The company has a one-year high of $98.58 and a one-year low of $45.50. Currently, 2U Inc has an average volume of 712K.
Based on the recent corporate insider activity of 45 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 firm’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 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 was founded by Christopher J. Paucek in April 2008 and is headquartered in Lanham, MD.
