Baird’s Forecast and Future Outlook for Grand Canyon Education

Grand Canyon Education (NASDAQ:LOPE) has earned a spot as a top education solutions investment idea for 2024, heralding a promising revelation from a Baird Morning Report unveiled on Wednesday.

The Grand Canyon Education Inc (LOPE) stock has seen a 4.85% surge in the past year and an impressive 27.62% leap over the past five years.

Despite the recent downward trend (-14.04%) over the past month, analysts at Baird remain resolute that this company is poised to outperform in the foreseeable future. This optimism is underpinned by robust fundamental momentum, favorable valuation (at 16x 2024 estimated EPS), potential return to gains, a proven strategy, and commendable management.

The Phoenix-based education consultant has marked a 20% surge in new online enrollments year-over-year in the third quarter of 2023, attributable to robust marketing efficiency and promising leading indicators.

Furthermore, its hybrid outlook has been notably on the rise, as articulated in the Baird report.

Baird projects a consolidated revenue growth and an expansion in margins come 2024 and beyond, setting a price target of $165 against the current stock price of $121.

Stating, “We’d expect even better relative performance vs. S&P 500 (SP500) in more challenging macro,” the analysts at Baird envisage primary risks in regulation, which are not insignificant, while also highlighting potential risks and positive catalysts associated with an election year.