How UBS’s Coverage and Digital Expansion Outlook Will Impact Laureate Education (LAUR) Investors

• UBS recently initiated analyst coverage on Laureate Education, highlighting earnings growth prospects powered by campus expansion and digital market opportunities in Peru and Mexico.
• This coverage emphasized Laureate’s ability to drive revenue momentum through operational margin improvements and student base diversification, even following mixed Q2 2025 earnings.
• We’ll explore how UBS’s positive outlook on Laureate’s digital initiatives and geographic growth could shape the current investment narrative.

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Laureate Education Investment Narrative Recap

To own Laureate Education stock, investors need confidence in the continued expansion of private higher education across Mexico and Peru, as well as the company’s capability to grow enrollments and margins from digital opportunities. UBS’s recent initiation of coverage highlights these factors as central to the value proposition, but the news does not materially change the company’s biggest near-term catalyst: the need for strong enrollments to justify major capital investments. The greatest risk remains Laureate’s exposure to shifting macroeconomic and regulatory conditions in its two key markets. Among recent announcements, Laureate’s raised 2025 revenue guidance following its Q2 results stands out as most relevant. This higher outlook reflects continued top-line momentum, helping address concerns about margin pressures from new expansion and supporting the revenue-driven narrative highlighted by UBS as critical for short-term investor sentiment. Yet, despite all this momentum, investors should still watch for country-specific political or currency shocks that could ...

Read the full narrative on Laureate Education (it's free!)

Laureate Education's outlook projects $2.0 billion in revenue and $343.9 million in earnings by 2028. This is based on an assumed annual revenue growth rate of 8.4% and a $89.7 million increase in earnings from the current $254.2 million.

Uncover how Laureate Education's forecasts yield a $29.40 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Five individual fair value estimates from the Simply Wall St Community range from US$17 to US$64.46, reflecting significant differences in growth outlooks. With revenue growth concentrated in just two countries, these diverse views show why it’s crucial to consider multiple perspectives on future performance.

Explore 5 other fair value estimates on Laureate Education - why the stock might be worth 45% less than the current price!

Build Your Own Laureate Education Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Laureate Education research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Laureate Education research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Laureate Education's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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