Citron Research Sees K12 Inc Stock Hitting $100
Andrew Left's Citron Research published a $100 price target for K12 Inc., an education company based in Virginia, USA, that sells online schooling and curricula. Many school districts in the USA have said that online learning will be a significant part of the country's school-age children's education in the autumn, leading to Citron's bullish stance on the stock.
"K12 Inc. is best positioned to take advantage of this megatrend yet is trading at the lowest multiple within its peer group because investors have yet to properly assess the new landscape of education. K12 Inc. will emerge as the online school of choice for America’s 57 million K-12 students and the leading back-end solution for the over 130 thousand K-12 schools that are looking to shift from brick and mortar to a hybrid model with a full online component" the firm said in its note.
Citron compares K12 to Teladoc, a multinational telemedicine and virtual healthcare company. Teladoc's stock has risen from $83.26 at the start of 2020 to $209.22 at the close of trading in New York yesterday.
"What Teladoc did for medicine, LRN will do for education...while the market has already recognized what COVID has done for Teladoc in expanding its TAM with the share price up almost 200% YTD, investors have yet to see that COVID has been the tailwind that LRN has been waiting for" says Citron.
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