LINC - Lincoln Educational: Consolidation Likely Needed Before The Next Up Move Begins
2024-03-31 11:48:18 ET
Summary
- We are maintaining our Hold rating in Lincoln Educational due to expected consolidation over the near-term.
- The company reported strong earnings numbers, with student starts increasing by close to 18% and revenue surpassing guidance.
- While near-term trading may be choppy, the company's higher student retention rates and revenue per student suggest potential for long-term earnings growth.
Intro
In our most recent commentary in Lincoln Educational Services Corporation ( LINC ) (June of 2023), we reverted to a 'Hold ' rating after multiple ' Buy ' ratings in the stock in 2022. We do believe in the rebalancing approach in that when the underlying trends & associated fundamentals are not temporarily aligned (For whatever reason) with the company, it is best to revert to a more cautionary stance....
Lincoln Educational: Consolidation Likely Needed Before The Next Up Move Begins