On January 8, Shlomo Rosenbaum from Stifel Nicolaus assigned a Buy rating to McGraw Hill Inc. (NYSE:MH). Rosenbaum set a target price of $19, indicating nearly a 20% increase from current levels.
This assessment came after the company revealed a leadership change. CEO and President Simon Allen will be succeeded by Philip Moyer on February 9. Allen will remain as Chairman of the Board.
Rosenbaum described the timing as "somewhat unusual," noting the company's public listing occurred just six months prior. However, the analyst pointed out that Moyer, while lacking an Education industry background, brings experience from technology businesses and a focus on artificial intelligence.
Earlier, on December 22, Goldman Sachs analyst George Tong also reaffirmed a Buy rating for McGraw Hill. Tong adjusted his price target downward from $25 to $22, which still projects an approximate 39% upside for investors.
Tong forecast robust revenue growth for the K-12 segment in 2026, though he anticipated somewhat limited operating margins. He expected slowing growth for the Global Professional segment as older products are phased out. The Higher Education segment's outlook was described as strong, with the company positioned to leverage AI capabilities supported by its extensive proprietary content.
McGraw Hill Inc. operates globally through four divisions: K-12, Higher Education, Global Professional, and International. These segments provide learning solutions, instructional materials, and academic curricula in both print and digital formats.