Last Update 12 Dec 25

HURN: Future Performance Will Reflect Guidance, Share Repurchases And Execution Discipline

Analysts have lifted their price target on Huron Consulting Group sharply higher to reflect a move toward a mid to high $200s valuation range. This is supported by increased conviction in accelerating growth, favorable estimate revisions, and modestly higher valuation multiple assumptions following recent results.

Analyst Commentary

Bullish analysts highlight a stronger growth trajectory for Huron Consulting Group, reflected in multiple recent price target increases and higher assumed valuation multiples. Their updated models point to both near term execution momentum and a more durable earnings power than previously expected.

While the tone of recent research is predominantly positive, some observers still flag valuation sensitivity and the need for continued operational discipline as the stock re-rates toward a higher trading range.

Bullish Takeaways

Bullish analysts are raising price targets into the $190 to $240 range, signaling greater confidence that Huron can sustain growth consistent with a mid to high $200s valuation scenario over time.
Upward revisions to revenue and EBITDA estimates, especially following recent quarterly results, are supporting a higher earnings base that underpins the increased targets.
Assumed enterprise value to EBITDA multiples have been lifted from roughly the low teens to the mid teens, reflecting stronger conviction in accelerating growth and improved visibility into the demand pipeline.
Recent execution, including better than expected performance in key advisory and consulting segments, is viewed as validating Huron’s strategy and supporting a higher quality, more durable growth profile.

Bearish Takeaways

Bearish analysts caution that the move to higher EV to EBITDA multiples leaves less room for error, with execution missteps or slower bookings potentially pressuring the new valuation framework.
As expectations build around sustained accelerating growth, any deceleration in project wins or utilization rates could trigger estimate cuts and multiple compression.
Some investors may view the rapid progression of price targets as pulling forward future upside, increasing sensitivity to macro headwinds and sector specific spending slowdowns.
The reliance on continued outperformance versus quarterly expectations heightens the risk that even in line results could disappoint a market now primed for ongoing upside surprises.

What's in the News

Keyin College, Huron, and Vantiq were pre qualified as an Innovation Partner for Newfoundland and Labrador Health Services, supporting 2025 to 2026 digital health training, Epic EHR implementation, and AI powered care delivery initiatives across the province (Key Developments).
Huron affirmed and narrowed its full year 2025 revenue guidance before reimbursable expenses to a range of $1.65 billion to $1.67 billion, indicating confidence in its growth trajectory (Key Developments).
From July 1 to September 30, 2025, Huron repurchased 146,514 shares for $18.73 million, completing a multi year buyback totaling 7,179,222 shares, or 38.81 percent of shares, for $589.43 million under the program launched in 2020 (Key Developments).

Valuation Changes

Fair Value Estimate remains unchanged at approximately $178.33 per share, indicating no shift in the core intrinsic value assessment.
Discount Rate has fallen slightly from about 7.62 percent to 7.56 percent, reflecting a modest reduction in perceived risk or cost of capital.
Revenue Growth Assumption is essentially unchanged at roughly 9.36 percent, suggesting steady expectations for top line expansion.
Net Profit Margin Assumption is effectively flat at about 9.49 percent, indicating stable views on long term profitability.
Future P/E Multiple has edged down slightly from approximately 15.49x to 15.46x, implying a marginally more conservative forward valuation multiple.

Regulatory pressures and operational challenges in healthcare and education are increasing demand for Huron's specialized consulting and financial improvement services, boosting both growth and profitability.
Expansion in digital capabilities, disciplined acquisitions, and focused capital allocation are driving sustainable growth, diversification, and improved shareholder returns.
Heavy reliance on healthcare and education clients, rising costs, and increased competition threaten Huron's revenue stability, margins, and long-term growth due to policy, funding, and regulatory risks.

Catalysts

About Huron Consulting Group

Provides consultancy and managed services in the United States and internationally.What are the underlying business or industry changes driving this perspective?

Heightened regulatory complexity and constrained funding across healthcare and education are prompting clients to seek specialized consulting for financial improvement and compliance, positioning Huron to benefit from increased client spend and supporting both near
and long-term revenue growth.
Increasing client urgency to optimize operational efficiency and reduce costs, particularly due to ongoing margin pressure in healthcare and education, is driving strong demand for Huron's higher-margin performance improvement and financial advisory services, which should positively impact both net margins and earnings growth.
Huron's investments in digital transformation capabilities, proprietary software, and analytics are aligning with accelerating adoption of cloud, AI, and data modernization in the commercial sector, generating record sales conversions and robust project pipelines, supporting sustainable top-line expansion going forward.
Strategic and disciplined acquisitions (e.g., Eclipse Insights, Treliant, AXIA) are broadening Huron's offerings, deepening expertise in underpenetrated markets, and diversifying revenue streams, which is expected to enhance overall growth, operating leverage, and financial resilience over the long term.
Solid progress in programmatic tuck-in acquisitions coupled with ongoing share repurchases and balanced capital allocation is expected to drive EPS accretion from 2026 onward, improving shareholder returns and supporting higher future earnings per share.

Huron Consulting Group Earnings and Revenue Growth

Huron Consulting Group Future Earnings and Revenue Growth

Assumptions

How have these above catalysts been quantified?

Analysts are assuming Huron Consulting Group's revenue will grow by 9.4% annually over the next 3 years.
Analysts assume that profit margins will increase from 6.8% today to 8.5% in 3 years time.
Analysts expect earnings to reach $172.9 million (and earnings per share of $10.27) by about September 2028, up from $105.1 million today. The analysts are largely in agreement about this estimate.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 18.5x on those 2028 earnings, down from 21.3x today. This future PE is lower than the current PE for the US Professional Services industry at 26.3x.
Analysts expect the number of shares outstanding to decline by 1.8% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 7.57%, as per the Simply Wall St company report.

Huron Consulting Group Future Earnings Per Share Growth

Risks

What could happen that would invalidate this narrative?

Heavy dependence on healthcare and education clients exposes Huron to significant policy risk and long-term funding volatility-recent legislation cutting Medicaid and federal research support could reduce client budgets, result in unpredictable revenue streams, and drive client attrition, impacting both revenue and earnings.
Slower sales conversion and temporary pauses in digital transformation projects within the healthcare segment signal that clients are delaying technology investments as they prioritize financial stability; if these pauses extend or digital adoption lags, Huron may face slower growth and margin compression in higher-value service lines, negatively impacting top-line growth and net margins.
Rising compensation costs (including aggressive hiring to meet strong consulting demand) and increased contractor expenses, alongside ongoing M&A integration expenses, pose a risk to sustained margin expansion-if revenue growth slows or integration efficiencies fail to materialize, net margins and earnings could erode.
Intensifying competition from specialized consultancies, technology-focused advisory firms, and global players could pressure pricing power, increase talent costs due to industry-wide shortages, and reduce client retention-collectively, these factors threaten revenue growth and margin stability over the long term.
Ongoing and increasing regulatory complexity (especially in data privacy, healthcare, and education) could raise Huron's compliance-related expenses and legal exposure, forcing the company to make additional unplanned investments in controls and systems, thereby squeezing profitability and potentially lowering net income.

Valuation

How have all the factors above been brought together to estimate a fair value?

The analysts have a consensus price target of $171.5 for Huron Consulting Group based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $2.0 billion, earnings will come to $172.9 million, and it would be trading on a PE ratio of 18.5x, assuming you use a discount rate of 7.6%.
Given the current share price of $139.58, the analyst price target of $171.5 is 18.6% higher.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Share Repurchases And Revenue Expansion Will Drive Stronger Returns Ahead