Dec. 2 at 3:02 PM
$LRN $LRN Stride: Solid EdTech growth story with 42.11% upside potential.
Entry Price - 63.33
Target price - 90.00
Position size - 1%
Risk - High
Horizon - 12 months
Growth potential - 42.11%
1. Online education continues to gain traction thanks to its convenience, flexibility, and broad accessibility. The global online learning market is expected to reach
$203.8 billion in 2025 and expand at a CAGR of 8.2%, reaching
$279.3 billion by 2029.
2. In Q1 FY2026, Stride reported 247,700 enrollments (+11.3% YoY) and
$620.9 million in revenue (+12.7% YoY). Operating income grew 46.1%, and EPS reached
$1.52. Despite strong financial performance, enrollment numbers came in slightly below analysts’ expectations of 249,200.
3. Despite short-term operational challenges and weaker guidance, Stride’s long-term outlook remains strong, supported by FY2028 revenue targets of
$2.7–
$3.3 billion, EPS of
$6.15–
$8.35, and attractive valuation metrics (TTM P/E ~10.15x, EV/EBITDA ~4.94x).
