Investors want to get ahead of a potential rally on shares of Strategic Education as the company's earnings strengthen, Bank of America said.
Analyst Heather Balsky upgraded the education stock to buy from neutral while pulling back her price target by $9 to $90.
"We see upside to sales and margins driven by its post-COVID recovery, improved marketing effectiveness, and tight cost control," she said in a note to clients Friday.
STRA YTD mountain Strategic Education, year to date Balsky said recovery has been hurt by processing delays for international students at its Australian college.
And Balsky added that margins should also beat expectations if sales growth comes in better than expected.
Persons:
Heather Balsky, Balsky, Torrens, Strayer, — CNBC's Michael Bloom
Organizations:
Strategic Education, Bank of America, Capella
Locations:
U.S, Strayer, New Zealand, Australia