Barrington Believes Adtalem Global Education Inc (NYSE: ATGE) Still Has Room to Grow

Barrington analyst Alexander Paris reiterated a Buy rating on Adtalem Global Education Inc (NYSE: ATGE) today and set a price target of $50. The company’s shares opened today at $47.45, close to its 52-week high of $50.15.

Paris wrote:

“We believe this agreement to divest DVU enhances the value of Adtalem and its remaining institutions, allowing the management to focus on driving growth across its three key verticals of Medical and Healthcare, Technology and Business and Professional Education. Once this transaction is complete, we would expect ATGE’s valuation to rise towards the industry leaders, such as Strayer (26.1x forward earnings), Capella (20.3x forward earnings) and Grand Canyon (21.5x earnings). Given its new management team and strategic direction, a more aggressive share repurchase program, and its discount valuation (16.9x forward earnings), we are reiterating our OUTPERFORM investment rating and our price target of $50. Company Description Adtalem Global Education, Inc. engages in the provision of educational services.”

According to TipRanks.com, Paris is a 4-star analyst with an average return of 11.5% and a 53.9% success rate. Paris covers the Services sector, focusing on stocks such as American Public Education, Capella Education Company, and Franklin Covey Company.

Adtalem Global Education Inc has an analyst consensus of Moderate Buy, with a price target consensus of $48.40.

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Based on Adtalem Global Education Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $337 million and GAAP net loss of $80.93 million. In comparison, last year the company earned revenue of $452 million and had a net profit of $39.86 million.

Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2018, Carlos Filgueiras, the Group President, Tech of ATGE sold 36,605 shares for a total of $1,713,114.

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Adtalem Global Education, Inc. engages in the provision of educational services. Its institutions offer a wide array of programs in business, healthcare and technology and serve students in secondary postsecondary education as well as accounting and finance professionals.