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 ReadInstructure 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.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorEquitiesMid CapNewsPrice TargetInitiationMarketsAnalyst RatingsTrading IdeasBriefsExpert Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!