K12 Pops After Citron Says Online School Value Underrated

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Investing.com — K12 (NYSE:LRN) Inc jumped 11% after Citron Research said it should be trading at $100.

LRN is trading at an all-time high of about $42, and has two buy ratings, one hold and no sells, according to data compiled by Investing.com, with an average price target of $32.

Thanks to Covid-19 keeping kids at home, K12 is best positioned to take advantage of online school, Citron said. It is trading at the lowest multiple in its peer group and should emerge as the online school of choice for the U.S.’s 57 million K-12 students, as well as the leading back-end solution for more than 130,000 schools looking to shift from brick and mortar to a hybrid online model.

Citron is betting that while online school will never fully replace the classroom, the “hybrid model of learning will forever be embraced.”