UBS Cuts Laureate Education Price Target to $37.50 Amid Margin Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy LAUR?
Source: Yahoo Finance
- Price Target Adjustment: UBS has lowered the price target for Laureate Education from $39 to $37.50 while maintaining a Buy rating, indicating confidence in the company's future performance but also reflecting market concerns over seasonal fluctuations.
- Strong Fundamentals: Despite facing seasonal enrollment fluctuations and new campus ramp-up pressures, analysts noted that Laureate Education's fundamentals remain solid, with anticipated growth from its Peruvian operations in 2026 serving as a key growth driver.
- Earnings Forecast Downgrade: UBS has reduced its earnings forecasts by 9% and 5% for 2026 and 2027, respectively, yet still projects a nearly 16% compound annual growth rate from 2025 to 2030, indicating long-term growth potential.
- Competitive Analysis: While Laureate Education is viewed as a promising investment, analysts suggest that certain AI stocks may offer greater upside potential and carry less downside risk, implying a potential shift in market focus away from education stocks.
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Analyst Views on LAUR
Wall Street analysts forecast LAUR stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 33.860
Low
32.00
Averages
36.50
High
40.00
Current: 33.860
Low
32.00
Averages
36.50
High
40.00
About LAUR
Laureate Education, Inc. operates a portfolio of degree-granting higher education institutions (Laureate International Universities network) in Mexico and Peru. The Laureate International Universities network offers a range of undergraduate and graduate degrees through campus-based, online and hybrid programs. The Company offers its educational services through two reportable segments: Mexico and Peru. It owns Universidad del Valle de Mexico (UVM) and Universidad Tecnologica de Mexico (UNITEC) in Mexico. It also owns the Universidad Peruana de Ciencias Aplicadas (UPC), Universidad Privada del Norte (UPN) and CIBERTEC institution in Peru. Its institutions in Mexico and Peru offer traditional higher education students a private education alternative, with multiple brands and price points in each market and program. The Company offers various programs, including medicine and health sciences, engineering and information technology, and business and management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UBS Cuts Laureate Education Price Target to $37.50 Amid Margin Pressures
- Price Target Adjustment: UBS has lowered the price target for Laureate Education from $39 to $37.50 while maintaining a Buy rating, indicating confidence in the company's future performance but also reflecting market concerns over seasonal fluctuations.
- Strong Fundamentals: Despite facing seasonal enrollment fluctuations and new campus ramp-up pressures, analysts noted that Laureate Education's fundamentals remain solid, with anticipated growth from its Peruvian operations in 2026 serving as a key growth driver.
- Earnings Forecast Downgrade: UBS has reduced its earnings forecasts by 9% and 5% for 2026 and 2027, respectively, yet still projects a nearly 16% compound annual growth rate from 2025 to 2030, indicating long-term growth potential.
- Competitive Analysis: While Laureate Education is viewed as a promising investment, analysts suggest that certain AI stocks may offer greater upside potential and carry less downside risk, implying a potential shift in market focus away from education stocks.
See More
LAUREATE EDUCATION INC: UBS LOWERS TARGET PRICE TO $37.5 FROM $39
- Target Price Adjustment: Laureate Education has cut its target price to $37.50 from $39.
- Market Impact: This adjustment reflects changes in market conditions and expectations for the company's performance.
See More
Laureate Education Reports Strong 2025 Earnings with Record Revenue and Margin Expansion
- Significant Performance Growth: In 2025, Laureate Education achieved $1.7 billion in revenue and $519 million in adjusted EBITDA, both exceeding guidance provided last October, demonstrating the company's success in executing growth strategies, with a historical high margin of 30.5% for the year.
- Increased Shareholder Returns: The company returned $217 million to shareholders through its stock repurchase program in 2025 and authorized an additional $150 million for buybacks, emphasizing its commitment to long-term value creation, while ending the year with a net cash position of $18 million, reflecting financial stability.
- Ongoing Expansion Plans: Management expects revenue growth of 11% to 12% in 2026 and plans to invest further in digital education and new campus openings, particularly in AI-driven online offerings, to meet the growing market demand.
- Strong Market Performance: In 2025, new enrollments in Mexico and Peru increased by 5% and 13%, respectively, with margin expansions in both countries, indicating Laureate's competitive strength and sustained growth potential in the Latin American market.
See More
Laureate Education Q4 Earnings Analysis
- Earnings Performance: Laureate Education reported a Q4 non-GAAP EPS of $0.76, missing expectations by $0.03, yet revenue reached $541.4 million, reflecting a robust 27.9% year-over-year growth and exceeding forecasts by $14.3 million, indicating strong revenue momentum.
- Enrollment Growth: New enrollments for fiscal year 2025 increased by 8% compared to 2024, with total enrollments rising by 5%, demonstrating the company's ongoing success in attracting new students and enhancing future revenue potential.
- Regional Performance: In Peru, new and total enrollments grew by 13% and 7%, respectively, while in Mexico, they increased by 5% and 4%, showcasing strong demand in the Latin American market and further solidifying the company's position in the region.
- Market Performance: Laureate Education is the top performer among educational services stocks year-to-date, reflecting its competitive advantage in the industry, with Seeking Alpha's Quant Rating highlighting its visible long-term demand and growth potential, boosting investor confidence.
See More
Laureate Education Reports Strong 2025 Financial Results
- Significant Revenue Growth: In Q4 2025, Laureate reported revenue of $541.4 million, a 28% increase year-over-year, with a 16% rise on an organic constant currency basis, primarily driven by approximately $25 million of intra-year academic calendar timing, indicating strong demand and market share expansion in the education sector.
- Substantial Net Income Increase: The net income for Q4 reached $171.5 million, up 77.9% from $93.6 million in Q4 2024, largely due to higher operating income and a discrete tax benefit of $56.9 million, reflecting a significant improvement in the company's profitability.
- Robust Adjusted EBITDA: Adjusted EBITDA for Q4 2025 was $204.3 million, a 45% increase from $141.1 million in Q4 2024, demonstrating the company's success in cost control and operational efficiency, further solidifying its market position.
- Expanded Shareholder Return Program: Laureate announced a $150 million increase to its stock repurchase program, raising the total to $400 million, with plans to finance repurchases through free cash flow and liquidity, showcasing confidence in future growth and commitment to shareholders.
See More
Laureate Education Q4 Earnings Announcement Scheduled
- Earnings Release Date: Laureate Education is set to announce its Q4 earnings on February 19 before market open, with a consensus EPS estimate of $0.79, reflecting a 27.4% year-over-year increase, indicating sustained profitability.
- Revenue Growth Expectations: The revenue for Q4 is projected to reach $527.1 million, representing a 24.5% year-over-year growth, highlighting strong market demand and growth potential in the educational services sector.
- Consistent Outperformance: Over the past year, Laureate has beaten EPS and revenue estimates 100% of the time, showcasing the company's financial stability and effective management execution.
- Top Industry Performer: Laureate Education is the top performer year-to-date among educational services stocks, demonstrating its competitive advantage in the industry and investor confidence in its long-term growth potential.
See More
UBS Cuts Laureate Education Price Target to $37.50 Amid Margin Pressures
- Price Target Adjustment: UBS has lowered the price target for Laureate Education from $39 to $37.50 while maintaining a Buy rating, indicating confidence in the company's future performance but also reflecting market concerns over seasonal fluctuations.
- Strong Fundamentals: Despite facing seasonal enrollment fluctuations and new campus ramp-up pressures, analysts noted that Laureate Education's fundamentals remain solid, with anticipated growth from its Peruvian operations in 2026 serving as a key growth driver.
- Earnings Forecast Downgrade: UBS has reduced its earnings forecasts by 9% and 5% for 2026 and 2027, respectively, yet still projects a nearly 16% compound annual growth rate from 2025 to 2030, indicating long-term growth potential.
- Competitive Analysis: While Laureate Education is viewed as a promising investment, analysts suggest that certain AI stocks may offer greater upside potential and carry less downside risk, implying a potential shift in market focus away from education stocks.
See More
LAUREATE EDUCATION INC: UBS LOWERS TARGET PRICE TO $37.5 FROM $39
- Target Price Adjustment: Laureate Education has cut its target price to $37.50 from $39.
- Market Impact: This adjustment reflects changes in market conditions and expectations for the company's performance.
See More
Laureate Education Reports Strong 2025 Earnings with Record Revenue and Margin Expansion
- Significant Performance Growth: In 2025, Laureate Education achieved $1.7 billion in revenue and $519 million in adjusted EBITDA, both exceeding guidance provided last October, demonstrating the company's success in executing growth strategies, with a historical high margin of 30.5% for the year.
- Increased Shareholder Returns: The company returned $217 million to shareholders through its stock repurchase program in 2025 and authorized an additional $150 million for buybacks, emphasizing its commitment to long-term value creation, while ending the year with a net cash position of $18 million, reflecting financial stability.
- Ongoing Expansion Plans: Management expects revenue growth of 11% to 12% in 2026 and plans to invest further in digital education and new campus openings, particularly in AI-driven online offerings, to meet the growing market demand.
- Strong Market Performance: In 2025, new enrollments in Mexico and Peru increased by 5% and 13%, respectively, with margin expansions in both countries, indicating Laureate's competitive strength and sustained growth potential in the Latin American market.
See More
Laureate Education Q4 Earnings Analysis
- Earnings Performance: Laureate Education reported a Q4 non-GAAP EPS of $0.76, missing expectations by $0.03, yet revenue reached $541.4 million, reflecting a robust 27.9% year-over-year growth and exceeding forecasts by $14.3 million, indicating strong revenue momentum.
- Enrollment Growth: New enrollments for fiscal year 2025 increased by 8% compared to 2024, with total enrollments rising by 5%, demonstrating the company's ongoing success in attracting new students and enhancing future revenue potential.
- Regional Performance: In Peru, new and total enrollments grew by 13% and 7%, respectively, while in Mexico, they increased by 5% and 4%, showcasing strong demand in the Latin American market and further solidifying the company's position in the region.
- Market Performance: Laureate Education is the top performer among educational services stocks year-to-date, reflecting its competitive advantage in the industry, with Seeking Alpha's Quant Rating highlighting its visible long-term demand and growth potential, boosting investor confidence.
See More
Laureate Education Reports Strong 2025 Financial Results
- Significant Revenue Growth: In Q4 2025, Laureate reported revenue of $541.4 million, a 28% increase year-over-year, with a 16% rise on an organic constant currency basis, primarily driven by approximately $25 million of intra-year academic calendar timing, indicating strong demand and market share expansion in the education sector.
- Substantial Net Income Increase: The net income for Q4 reached $171.5 million, up 77.9% from $93.6 million in Q4 2024, largely due to higher operating income and a discrete tax benefit of $56.9 million, reflecting a significant improvement in the company's profitability.
- Robust Adjusted EBITDA: Adjusted EBITDA for Q4 2025 was $204.3 million, a 45% increase from $141.1 million in Q4 2024, demonstrating the company's success in cost control and operational efficiency, further solidifying its market position.
- Expanded Shareholder Return Program: Laureate announced a $150 million increase to its stock repurchase program, raising the total to $400 million, with plans to finance repurchases through free cash flow and liquidity, showcasing confidence in future growth and commitment to shareholders.
See More
Laureate Education Q4 Earnings Announcement Scheduled
- Earnings Release Date: Laureate Education is set to announce its Q4 earnings on February 19 before market open, with a consensus EPS estimate of $0.79, reflecting a 27.4% year-over-year increase, indicating sustained profitability.
- Revenue Growth Expectations: The revenue for Q4 is projected to reach $527.1 million, representing a 24.5% year-over-year growth, highlighting strong market demand and growth potential in the educational services sector.
- Consistent Outperformance: Over the past year, Laureate has beaten EPS and revenue estimates 100% of the time, showcasing the company's financial stability and effective management execution.
- Top Industry Performer: Laureate Education is the top performer year-to-date among educational services stocks, demonstrating its competitive advantage in the industry and investor confidence in its long-term growth potential.
See More
