Lake Street Capital Markets adjusted its outlook for Lincoln Educational Services (NASDAQ:LINC), raising the firms price target to $35 from $26 while keeping a Buy rating on the stock. The shares are trading at $34.25, close to their 52-week high, and have returned roughly 78% over the last 12 months.
At the same time, InvestingPros valuation model classifies Lincoln among companies that are overvalued relative to their Fair Value, placing the company on a Most Overvalued list despite recent upward momentum in the share price.
Lake Streets revision is informed in part by Lincoln Educationals expectation that it can reach or nearly reach a $600 million revenue objective for 2027 as early as 2026. Achieving that threshold in 2026 would imply roughly 18% growth compared with the companys 2026 midpoint guidance of 13%.
Over the last twelve months Lincoln reported revenue of $518 million and sustained a gross profit margin of 60%.
Operationally, the companys Healthcare and Other Professions segment experienced a 2.0% decline in new student starts in the fourth quarter. Lake Street anticipates that this segment will see favorable year-over-year comparisons in 2026 after the Paramus, New Jersey campus received relief from the New Jersey Board of Nursing and LPN enrollments restarted in January. The company will also lap the prior-year decision to cease enrolling students in culinary and massage therapy programs.
Lincoln Educational has scheduled an Investor Day for March 19 where it will lay out a five-year plan.
Reflecting the firms view of expanding top-line momentum and about 7.5% organic growth in the Transportation and Skilled Trades segment, Lake Street raised its own revenue and adjusted EBITDA estimates for 2026.
In its most recent quarterly report, Lincoln Educational Services posted fourth-quarter 2025 revenue of $142.9 million, outpacing consensus expectations of $132.8 million. Reported earnings per share for the quarter matched forecasts at $0.40. Following the quarter, the company raised its guidance.
Other broker commentary has been supportive: Rosenblatt raised its price target on Lincoln from $27 to $39 while maintaining a Buy rating, citing an expanding skills gap as part of its rationale.
Taken together, the analyst revisions and the stronger-than-expected quarterly revenue underscore investor interest in Lincoln Educationals ability to deliver results above expectations and to capitalize on market opportunities identified by management and outside analysts.