Instructure's Win Strategy In LMS Market: How 70% Win Rate Could Drive $576.1M Revenue By 2024

Needham & Co. analyst Ryan MacDonald initiated coverage on Instructure Holdings Inc INST with a Buy rating and a price target of $32.  

The analyst expects INST to benefit from its market-leading position in the North American higher ed LMS market and K-12 and 14-month federal funding and international growth (TAM of $6.2 billion), and margins expansion.

The analyst expects the company to grow its shares by maintaining around a 70% win rate compared to legacy platforms like Blackboard and Moodle, given the universities' need for modern platforms to support non-traditional learners in an evolving education ecosystem.

Consequently, MacDonald projects 10%+ growth and an approximate 30% FCF margin for INST in the next several years. 

The analyst estimates revenues and EPS of $523.6 million and $0.78 in 2023 and $576.1 million and $1.10 in 2024. 

Also Read: Instructure Holdings Poised To Dominate Learning Management System Market: KeyBanc

Price Action: INST shares are trading higher by 3.11% at $27.56 on the last check Wednesday.