- Barrington Research analyst Alexander Paris has reiterated Outperform note on 2U inc. OF THEM shares, with a price target of $16.
- The analyst expects the company’s second-quarter sales to be $256 million compared to FactSet’s estimate of $255.3.
- Paris sees an adjusted loss per share of ($0.09) against the consensus of a loss of ($0.19) per share.
- Paris said the edX acquisition and increased interest in online education could help the company increase its profitability.
- He further added that the report of Byju, an online education startup based in Bangaloreoffering $15 per share for 2U had increased the stock’s value by 16%.
- On an Adjusted EBITDA basis, 2U trades at 18.6x and 13.1x our 2022 and 2023 estimates, respectively, a premium to its Ed Tech peer group average of 14.3x/11.9x, concluded Paris.
- Price Action: TWOU shares are trading down 9.51% to $9.71 when last checked on Monday.
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