Barrington analyst Alexander Paris reiterated a Buy rating on Rosetta Stone (RST) today and set a price target of $29. The company’s shares opened today at $19.80.
Paris observed:
“We would continue to be buyers of RST given the intrinsic value of its parts; continued strong growth at Lexia; a more predictable/sustainable sales model as a result of the subscription transition, which will continue to benefit from sales team alignment as the company executes on its go-to-market strategy; improving cash flow; and its already healthy balance sheet with no long-term debt. As such, we are reiterating our OUTPERFORM investment rating and our $29 price target, which is based on our sum-of-the-parts valuation analysis, suggesting approximately 45% upside from current levels.”
According to TipRanks.com, Paris is a 3-star analyst with an average return of 2.3% and a 46.5% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Strategic Education Inc.
Currently, the analyst consensus on Rosetta Stone is a Moderate Buy with an average price target of $27.50.
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Based on Rosetta Stone’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $544K. In comparison, last year the company had a GAAP net loss of $4.16 million.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. Most recently, in May 2019, Thomas Pierno, the CFO of RST sold 111,363 shares for a total of $2,667,039.
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Rosetta Stone, Inc. engages in the provision of technology based language learning solutions. It develops, markets, and sells language learning solutions consisting of software products, online services, and audio practice tools under the Rosetta Stone brand.
