Why Wall Street Is Reassessing McGraw Hill, Inc. (MH)

McGraw Hill, Inc. (NYSE:MH) is among the most promising education stocks according to hedge funds. On February 12, TheFly reported that Baird trimmed the price target on McGraw Hill, Inc. (NYSE:MH) to $19 from $21 and maintained an Outperform rating. This follows the firm’s model adjustment driven by solid results and improved guidance.

On the same day, BMO Capital also lowered the price target on McGraw Hill, Inc. (NYSE:MH) to $19 from $21 and reiterated an Outperform rating. The downward revision comes even after the company’s “strong beat” in the third-quarter, thanks to the Higher Education segment. According to BMO, the division’s outperformance was driven by market share gains, market skew growth, and a strengthened product mix, among other factors.

On the other hand, UBS slightly lifted the price target on McGraw Hill, Inc. (NYSE:MH) to $17, up from $16, as it believes shares will appreciate because of robust Q3 results. Although execution has been strong and the stock offers an appealing normalized free cash flow yield, concerns about AI’s impact in the long haul could constrain multiple expansion, the firm noted, adding that it remains neutral.

McGraw Hill, Inc. (NYSE:MH) is an Ohio-based provider of information solutions for K-12, higher education, and professional markets. Incorporated in 1888, the company operates through three segments: K-12, Higher Education, Global Professional, and International.

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