BMO Capital maintained a neutral rating on Stride Inc. shares on Monday, assigning a price target of $93.00 while keeping the stock at Market Perform. The New York-listed educational services provider, trading under ticker LRN, last changed hands at $87.36, representing a 6.5% discount to BMO's valuation.
The firm's analysis follows Stride's fiscal 2026 results, which showed revenue growth of 4.7% to $2.518 billion, alongside adjusted earnings of $8.33 per share. BMO noted improvements in operating income, EBITDA, and enrollment figures, though the company did not provide formal guidance for the upcoming fiscal first quarter of 2027, which coincides with the Fall 2026 enrollment period.
Stride's valuation metrics included a price-to-earnings ratio of 12.1 and a PEG ratio of 0.53. Separate data from InvestingPro placed Stride's fair value at $119.93, classifying the stock as one of the platform's most undervalued picks. The discrepancy between BMO's target and the current market price suggests limited near-term upside under the brokerage's base-case scenario.
The assessment comes as Stride continues to operate in the online and blended learning segment, a market that has seen steady demand post-pandemic. BMO's neutral stance implies a balanced view between the company's operational improvements and valuation constraints, with no imminent catalyst expected to materially shift the stock's trajectory.
