Market Overview

UPDATE: Stifel Nicolaus Initiates Houghton Mifflin Harcourt, Publishing Recovery Outlook Positive


In a report published Tuesday, Stifel Nicolaus analyst David Pang initiated coverage on Houghton Mifflin Harcourt Co. (NASDAQ: HMHC) With a Buy rating on the shares and a $21.00 price target.

According to the report, “As a leading provider of U.S.-based preK-12 educational solutions, we see Houghton Mifflin Harcourt as the best way to play the anticipated recovery in el-hi publishing. We believe HMHC is in the early stages of a turnaround, and our estimates assume further
acceleration of growth, higher cash flows, and profitability following several years of significant losses. At 9.2x and 11.7x our CY14 adj. EBITDA and FCF estimates, respectively, we view valuation as reasonable at these levels.”

Some key points from the report included:

- Coverage initiation follows the company’s IPO in mid-November.
- "We believe HMHC is in the early stages of a turnaround.”
- "After emerging from bankruptcy less than two years ago, the company’s balance sheet is vastly improved, while cash flow characteristics should continue to get better, driving higher net cash balances, which yields greater operational flexibility and opportunities to enhance shareholder value (longer term), in our opinion.”

HMHC closed Monday at $17.77.

Latest Ratings for HMHC

Apr 2020CitigroupDowngradesBuySell
Oct 2019BMO CapitalMaintainsOutperform
Sep 2019Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for HMHC
View the Latest Analyst Ratings


Related Articles (HMHC)

View Comments and Join the Discussion!

Posted-In: David Pang Stifel NicolausAnalyst Color Initiation Analyst Ratings

Latest Ratings

VOYAPiper SandlerMaintains58.0
PRUPiper SandlerMaintains64.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at