ATGE - BMO Capital upgrades Adtalem Global to Outperform on enrollment growth

2023-07-07 13:26:44 ET

• BMO Capital Markets upgrades Adtalem Global Eductaion ( NYSE: ATGE ) +7% to outperform on Friday after shares slid 23% in the last one month. The brokerage firm has set PT of $44 against market price of $33.71 as on July 6, 2023.
• Analyst has adjusted FY24 estimates as per the estimates announced at the company's investor day. The for-profit school chain guided FY2024 revenue guidance above expectations, though EPS guidance was below due to investments.
• Brokerage said that nursing school enrollment has returned to growth compared to its pandemic lull. It said Adtalem's largest segment, Chamberlain, had seen a return to growth in the third-quarter and expects this trend to continue.
• Walden University, which was acquired in August 2021, started to demonstrate new enrollment growth after new leadership revamped marketing and operating efficiencies.
• Medical and Veterinary schools revenue have increased over the past three of the last four quarters on steady student demand.
• BMO Capital's Outperform rating contrasts with SA Quant rating and average Wall Street rating of Hold.

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