Stride’s Hold Rating: Navigating IT Challenges and Future Growth Potential

In a report released today, Greg Parrish from Morgan Stanley maintained a Hold rating on Stride, with a price target of $130.00.Meet Your ETF AI Analyst Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow. Greg Parrish has given his Hold rating due to a combination of factors impacting Stride’s current operations and future outlook. One of the primary concerns is the recent challenges Stride faced with the implementation of its IT systems, specifically the Student Identification System (SIS) and the Learning Management System (LMS). These systems, crucial for the online school ecosystem, encountered significant issues that affected the student experience, such as registration problems and connectivity issues during peak usage. Despite these challenges, Stride has laid out a clear roadmap for improvements in its IT infrastructure, aiming to enhance the student experience beyond previous levels. However, while the company has made strides in addressing some of the major issues, there remains work to be done, particularly with the SIS’s rostering challenges and the LMS’s structural improvements. Additionally, although withdrawal rates have been elevated, the demand for Stride’s services remains strong, suggesting potential for future growth once these operational hurdles are overcome. In another report released on November 6, BMO Capital also maintained a Hold rating on the stock with a $82.00 price target.