LRN - Stride cut to Hold as Morgan Stanley assesses enrollment risk

2023-03-10 07:42:29 ET

Stride ( NYSE: LRN ) stock slipped in premarket action on Friday after Morgan Stanley moved to a Hold-equivalent rating.

Equity analyst Greg Parrish noted that the stock has risen over 30% year to date, stretching the company’s valuation. Meanwhile, he advised that the risk of continued enrollment declines as study sessions migrate back to brick and mortar locations post-COVID.

“Following the outperformance in the stock YTD, we think investors need to have strong conviction in '23/'24 school year enrollments to get into the stock at these levels,” Parrish wrote. “We think current valuation appropriately balances the step up in organic growth profile with forward enrollment risk.”

He maintained a $46 price target. Shares of Stride ( LRN ) slipped 1.32% before the bell on Friday.

Read more on the company’s most recent earnings results .

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