Huron has 'hidden asset' with Shorelight Education, says William Blair
William Blair analyst Timothy McHugh believes Huron Consulting Group's investment in privately held Shorelight Education is an "overlooked" and "hidden" asset. Shorelight helps universities recruit and educate non-U.S. students, the analyst tells investors in a research note. He points out that the number of students enrolled worldwide in foreign countries increased annually at a 6% from 2000 to 2014, and is expected to grow at a 4%-5% rate through 2025. Huron carried the 20% ownership interest in Shorelight on its balance sheet at $47M last quarter, which is up from $35M most of last year, McHugh writes. The analyst believes the value of Huron's investment could be "meaningfully higher" if assuming $100M to $150M of revenue and a 3-7 times revenue multiple. McHugh keeps an Outperform rating on Huron Consulting Group.