UBS has adjusted its valuation for Laureate Education Inc (NASDAQ:LAUR), lowering the price target to $37.50 from $39.00 while retaining a Buy recommendation on the shares. At the time of the update the stock was trading at $33.38, implying potential upside relative to the new target and a market capitalization of $4.78 billion.
The change follows UBSs review of Laureates fourth-quarter results and the companys 2026 guidance. In its updated model, the firm trimmed its earnings estimates for Laureate by 9% for 2026 and by 5% for 2027. UBS attributed much of the investor concern to expected margin compression in the first quarter.
According to UBS, the majority of the short-term margin pressure stems from shifted seasonality in student intake combined with the costs associated with ramping a new campus. These factors are viewed as near-term headwinds rather than a permanent change to the companys profit trajectory, though they are expected to weigh on margins in the immediate quarter.
Investor sentiment has nonetheless been tempered by those near-term dynamics despite a strong share performance over the last year. InvestingPro Tips noted that Laureate has delivered a substantial return, with shares up 73.44% over the past twelve months, underlining the stocks recent rally amid operational and market developments.
On a regional basis UBS highlighted constructive operational trends in Laureates Peruvian business for the coming year, and suggested that growth acceleration in Mexico could materialize in 2027 and 2028. The firm projects an earnings compound annual growth rate of roughly 16% from 2025 through 2030, with that projection adjusted for a one-time tax benefit recorded in the fourth quarter.
From a valuation and health perspective, Laureate trades at a price-to-earnings ratio of 17.59. InvestingPro assigns the company a GREAT financial health score and provides additional analytical tools, including Fair Value estimates and ProTips for subscribers assessing the stock.
UBS also took note of corporate actions and currency movements that affect Laureates outlook. The company increased its buyback authorization by $150 million, and UBS pointed to ongoing foreign exchange tailwinds in both Mexico and Peru as supportive factors for earnings in those markets.
Laureates reported fourth-quarter 2025 results were mixed. The company posted earnings per share of $0.76, missing consensus expectations of $0.78 by 2.56%. Revenue for the quarter came in at $541.4 million, beating the projected $528.69 million by 2.4%. The revenue outperformance was highlighted by market participants as evidence of continued top-line momentum.
Overall, UBSs revisions reflect a combination of short-term margin pressures and longer-term operational confidence in specific markets. The firms updated estimates and unchanged Buy stance suggest it views the current share price as presenting potential upside, while also acknowledging the timing risks tied to seasonality and campus expansion.
Summary
UBS trimmed Laureate Educations price target to $37.50 and lowered 2026 and 2027 EPS estimates after the companys Q4 report, citing near-term margin pressure from student intake seasonality and a new campus ramp-up. Laureate delivered a revenue beat but an EPS miss for the quarter, increased its buyback by $150 million, and continues to benefit from FX tailwinds in Mexico and Peru.