Barrington Believes Grand Canyon Education (NASDAQ: LOPE) Still Has Room to Grow

By Carrie Williams

Barrington analyst Alexander Paris maintained a Buy rating on Grand Canyon Education (NASDAQ: LOPE) today and set a price target of $115. The company’s shares opened today at $110.42, close to its 52-week high of $110.61.

Paris noted:

“We believe this premium is warranted given its differentiated business model and the high potential for consistently strong earnings growth (it has beaten analysts’ estimates for 29 consecutive quarters), as its traditional ground campus capacity expands. Furthermore, with the approval of the GCU sale, significant incremental value could be unlocked for LOPE shareholders as revenue growth will be enhanced through additional contracts, minimal (if any) dilution to earnings and a higher multiple (potentially) on those earnings. As such, we are reiterating our OUTPERFORM rating and our 12-month price target of $115.”

According to TipRanks.com, Paris is a 4-star analyst with an average return of 12.2% and a 56.6% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Capella Education Company.

Currently, the analyst consensus on Grand Canyon Education is Strong Buy and the average price target is $111.50, representing a 1.0% upside.

In a report issued on April 10, BMO Capital also reiterated a Buy rating on the stock with a $112 price target.

Grand Canyon Education’s market cap is currently $5.27B and has a P/E ratio of 26.01. The company has a book value ratio of 5.3448.

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Grand Canyon Education, Inc. engages in the provision of education services. It offers graduate and undergraduate degree programs and certificates across colleges. The company was founded by Christopher C. Richardson and Brent D. Richardson in November 2003 and is headquartered in Phoenix, AZ.