Technical Analysis
Recent price action shows LRN has formed a strong uptrend since its Q2 earnings release in late January 2025. The stock surged 9% to $131.45 after reporting better-than-expected Q2 results and raising FY25 guidance. Key technical indicators suggest continued bullish momentum:
- Current price trading above both 50-day and 200-day moving averages
- Strong volume supporting the upward movement
- RSI indicating room for further upside before reaching overbought levels
Fundamental Catalysts
Q2 FY2025 Results:
- Revenue: $587.2M (beat $569.25M estimate)
- EPS: $2.03 (beat $1.94 estimate)
- Income from operations: $125.1M (up from $84.3M YoY)
- Adjusted EBITDA: $160.4M (up from $118.3M YoY)
- Average enrollments: 230,600 (up 19.4% YoY)
Forward Guidance:
- Q3 revenue guidance: $585M-$600M (above $571.86M estimate)
- FY2025 revenue guidance: $2.32B-$2.36B (above $2.29B estimate)
Price Prediction for Next Week
Based on technical analysis and fundamental momentum:
Base Case (60% probability): $135-140
- Consolidation near current levels with upward bias
- Support at $130-132 range
Bullish Case (30% probability): $140-145
- Break above recent highs on continued earnings momentum
- Strong institutional buying
Bearish Case (10% probability): $125-130
- Profit taking after recent gains
- Broader market weakness
Trading Recommendation: BUY
Entry points:
- Immediate entry at current levels
- Add on dips to $130-132 support zone
Stop loss: $125 (below 50-day moving average)
Target: $142 (short-term resistance level)
Technical Analysis
Recent price action shows LRN has formed a strong uptrend since its Q2 earnings release in late January 2025. The stock surged 9% to $131.45 after reporting better-than-expected Q2 results and raising FY25 guidance. Key technical indicators suggest continued bullish momentum:
- Current price trading above both 50-day and 200-day moving averages
- Strong volume supporting the upward movement
- RSI indicating room for further upside before reaching overbought levels
Fundamental Catalysts
Q2 FY2025 Results:
- Revenue: $587.2M (beat $569.25M estimate)
- EPS: $2.03 (beat $1.94 estimate)
- Income from operations: $125.1M (up from $84.3M YoY)
- Adjusted EBITDA: $160.4M (up from $118.3M YoY)
- Average enrollments: 230,600 (up 19.4% YoY)
Forward Guidance:
- Q3 revenue guidance: $585M-$600M (above $571.86M estimate)
- FY2025 revenue guidance: $2.32B-$2.36B (above $2.29B estimate)
Price Prediction for Next Week
Based on technical analysis and fundamental momentum:
Base Case (60% probability): $135-140
- Consolidation near current levels with upward bias
- Support at $130-132 range
Bullish Case (30% probability): $140-145
- Break above recent highs on continued earnings momentum
- Strong institutional buying
Bearish Case (10% probability): $125-130
- Profit taking after recent gains
- Broader market weakness
Trading Recommendation: BUY
Entry points:
- Immediate entry at current levels
- Add on dips to $130-132 support zone
Stop loss: $125 (below 50-day moving average)
Target: $142 (short-term resistance level)