Barrington Thinks Zovio Inc’s Stock is Going to Recover

By Austin Angelo

In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Zovio Inc (ZVOResearch Report), with a price target of $10. The company’s shares opened today at $5.70, close to its 52-week low of $4.77.

Paris commented:

“We view the transition of the company to a high-growth education technology services company as exciting and the current valuation an attractive entry point, despite our lower near-term earnings expectations. Recognizing that 2019 is a transition year as we await accreditor (WASC) approval for the non- profit conversion of Ashford, we are reiterating our OUTPERFORM investment rating. Given our lower earnings expectations, however, we are reducing our price target to $10 (from $15), still representing a double from current levels.”

According to TipRanks.com, Paris is a 4-star analyst with an average return of 8.1% and a 51.1% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Strategic Education Inc.

Zovio Inc has an analyst consensus of Moderate Buy, with a price target consensus of $9.25.

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The company has a one-year high of $13.63 and a one-year low of $4.77. Currently, Zovio Inc has an average volume of 250.5K.

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Zovio, Inc. provides postsecondary education services. Through Ashford University and University of the RockiesSM, it offers online programs such as contemporary college experience. Its services also include mobile and other learning platform for students.