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Now is the time to buy Stride online education stock, Morgan Stanley said. Analyst Greg Parrish has upgraded the K-12 virtual education provider to overweight from equal weight, saying in a note to clients that investors are underestimating the potential of growth and risk-reward ratio of the stock. “We view the recent pullback in equities after 4FQ earnings as an attractive entry point, and recent data points and commentary give us confidence that virtual education penetration is structurally higher than pre-COVID. “, did he declare. According to Parrish, Stride remains the leading provider of virtual education in the United States. The company’s growing professional learning business should also see continued success as it focuses on an underpenetrated market. Virtual learning has received a boost during the pandemic, but Parrish thinks interest should persist as more parents continue to seek flexible working or students opt in voluntarily. “We do not believe that the current penetration of 1.1% will return to pre-pandemic levels, and believe that further upside may be possible over time, although we do not factor this into our base case. “, did he declare. Morgan Stanley maintained its price target of $45 on the stock, implying a nearly 27% upside from Wednesday’s close. Stride shares are up 6.5% this year. – CNBC’s Michael Bloom contributed reporting
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