Jefferies assumes Phoenix Education Partners stock with buy rating

Jefferies assumes Phoenix Education Partners stock with buy rating

US stock futures slide further with tech set for more losses; Netflix disappoints Investing.com - Jefferies initiated coverage on Phoenix Education Partners (NYSE:PXED) with a Buy rating and set a price target of $38.00. The firm’s analyst Jack Slevin assumes coverage on the education company with the bullish rating. The price target was set at $38.00, down from a previous $46.00.

The stock has declined 9.5% over the past week, trading at $30.46 with a market cap of $1.1 billion. The analyst stated the company’s third-quarter fiscal 2026 results were solid and the guidance adjustment was well communicated during the second quarter. Jefferies noted that consistent year-over-year trends in non-B2B business from the second quarter to the third quarter indicate stability.

The firm recast its financial projections lower to reflect the current business trajectory. Jefferies cited concerns among investors about ongoing issues related to AI search. The firm believes the shares remain undervalued at less than 7 times price-to-earnings ratio.

InvestingPro analysis supports this view, indicating the stock is undervalued with a Fair Value above current levels. According to InvestingPro Tips, while 3 analysts have revised earnings downward recently, the company remains profitable over the last twelve months. Investors seeking deeper insights can access PXED’s comprehensive Pro Research Report, one of 1,400+ available on the platform.

In other recent news, Phoenix Education Partners reported its fiscal third-quarter results, revealing steady revenue but weaker profits. The company posted adjusted earnings of $1.43 per share, falling short of the $1.57 forecast, with revenue at $271.8 million, remaining flat compared to the previous year. Despite the earnings miss, the company highlighted its strong cash position and a strategic shift toward AI-driven student recruitment.

Meanwhile, Morgan Stanley lowered its price target for Phoenix Education Partners to $40 from $46, citing a mixed third-quarter performance with enrollment growth of approximately 1% that missed expectations. However, the firm maintained an Overweight rating, noting that margins exceeded forecasts, leading to a 7.5% adjusted EBITDA beat. Similarly, BMO Capital reduced its price target to $36 from $39 while maintaining an Outperform rating.

BMO pointed to ongoing challenges with the company’s algorithm and enrollment funnel despite a solid quarterly performance driven by margin improvements. These developments provide a snapshot of the company’s current financial landscape and strategic direction. This article was generated with the support of AI and reviewed by an editor.

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