There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Zovio Inc (ZVO) and The Hackett Group (HCKT) with bullish sentiments.
Zovio Inc (ZVO)
In a report released today, Alexander Paris from Barrington maintained a Buy rating on Zovio Inc, with a price target of $15. The company’s shares closed yesterday at $6.03, close to its 52-week low of $5.31.
Paris wrote:
“We view the transition of the company to a high-growth education technology services company as exciting and the current valuation an attractive entry point. Once the transition to an OPM model is complete, we believe Zovio (as revenue growth accelerates) will ultimately be valued versus an Ed Tech peer group, including 2U (TWOU; 7.7x LTM revenue), 10.1x), which are currently valued at 8.8x on average. ZVO trades at 0.1x LTM revenue. Recognizing that 2019 is a transition year as we await accreditor (WASC) approval for the non-profit conversion of Ashford University, which meets again on to consider Ashford’s application, we are reiterating our OUTPERFORM investment rating and our $15 price target.”
According to TipRanks.com, Paris is a 5-star analyst with an average return of 10.6% and a 56.5% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Strategic Education Inc.
Zovio Inc has an analyst consensus of Moderate Buy, with a price target consensus of $11.75.
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The Hackett Group (HCKT)
Barrington analyst Vincent Colicchio maintained a Buy rating on The Hackett Group today and set a price target of $22. The company’s shares closed yesterday at $15.43, close to its 52-week low of $15.16.
Colicchio observed:
“We expect Hackett to report Q1/19 non-GAAP EPS of $0.22, which is in line with the Factset consensus of $0.22. Our EPS forecast represents year-over-year and sequential declines of 12%. The declines are largely driven by our expectations of relatively weak revenue performance as described below.”
According to TipRanks.com, Colicchio is a 1-star analyst with an average return of -3.4% and a 57.3% success rate. Colicchio covers the Technology sector, focusing on stocks such as Sykes Enterprises Inc, Exlservice Holdings, and Computer Task.
Currently, the analyst consensus on The Hackett Group is a Moderate Buy with an average price target of $22.
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