Lincoln Educational Services Corp.
Lincoln Educational Services Corp. (NASDAQ: LINC) offers post-secondary education to high-school graduates and working adults. It operates 22 schools in 14 states under four brands: Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, and Euphoria Institute of Beauty Arts and Science. Its operating segments are 1) Transportation and Skilled Trades, which delivers academic programs in the disciplines of transportation and skilled trades, and 2) Healthcare and Other Professions (HOPS), which offers academic programs in the areas of hospitality, healthcare, business, and information technology.
Why Should Investors Book Profit?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
LINC's share price has inclined 13.97% in the past six months and is currently leaning towards the higher band of the 52-week range of USD 5.25 to USD 8.20. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 6.26.
Considering the company's growth in revenue, declining margin profile, current valuation and associated risks. we recommend a "Sell" rating on the stock at the current price of USD 7.26, up 0.28% as of February 23, 2022, at 10:21 AM ET.
Three-Year Technical Price Chart (as of February 23, 2022, at 10:21 AM ET). Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.