Fly News Breaks for August 13, 2019
CHGG, LRN, TWOU, INST
Aug 13, 2019 | 09:08 EDT
William Blair analyst Stephen Sheldon yesterday afternoon initiated coverage of Chegg (CHGG) and K12 (LRN) with Outperform ratings, and of 2U (TWOU) with a Market Perform rating. The analyst also assumed coverage of Instructure (INST) with a Market Perform rating following an analyst departure earlier this year. The amount spent annually on traditional education is large and growing, estimated to reach close to $1.5 trillion in the United States, Sheldon wrote in a research note. There are "numerous pain points" in the education industry, and solutions from education technology providers are helping alleviate some of these "highly complex" issues, adds the analyst. He believes that Chegg should be able to deliver at least 20% revenue growth over the next three years and that K12 can deliver mid-single-digit revenue growth over time. For 2U, Sheldon believes tge shares will be range-bound until the company provides clarity on its long-term model and "rebuilds trust."
News For CHGG;LRN;TWOU;INST From the Last 2 Days