JPMorgan Raises McGraw Hill Target to $22; Baird $19, UBS $17
JPMorgan raised McGraw Hill’s price target to $22 from $21 as Baird cut its target to $19 and UBS lifted its target to $17. On February 11, McGraw Hill reported Q3 revenue of $434.2 million versus $410.1 million estimates and named Philip Moyer CEO to accelerate digital, AI growth.
1. Analyst Price Target Revisions
JPMorgan increased its price target on McGraw Hill to $22 from $21 and maintained an Overweight rating while Baird lowered its target to $19 from $21 with an Outperform rating. UBS also raised its target to $17 from $16 and reiterated a Neutral rating, citing strong Q3 results and a raised outlook for Higher Education and K-12 segments.
2. Q3 Financial Performance
McGraw Hill reported fiscal third-quarter revenue of $434.2 million, exceeding the $410.1 million consensus estimate. The beat was driven by share gains in digital and data-driven learning solutions, contributing to a raised guidance and a normalized free cash flow yield near 9%.
3. Leadership Transition
Simon Allen retired as President and CEO and remains Chair of the Board, while Philip Moyer was appointed CEO. Moyer’s background in technology and artificial intelligence is expected to guide the company’s next growth phase focused on digital transformation and margin expansion in fiscal 2027.