Morgan Stanley Reduces PT on Stride, Inc. (LRN) to $130 From $159, Keeps an Equal Weight Rating

Stride, Inc. (NYSE:LRN) is one of the best consumer defensive stocks with more than 50% upside. On October 29, Morgan Stanley slashed the price target on Stride, Inc. (NYSE:LRN) to $130 from $159 while keeping an Equal Weight rating on the shares.

The rating update came after Stride, Inc. (NYSE:LRN) reported its fiscal Q1 2026 results on October 28, and the firm told investors that while the company’s results showed a relatively in-line quarter, it expects its enrollment throughout the 2025-2026 school year to be disrupted by headwinds. Morgan Stanley thus lowered its fiscal year 26 revenue and adjusted operating income estimates by 7% and 12%, respectively.

Stride, Inc. (NYSE:LRN) reported $620.9 million in revenue in fiscal Q1 2026, while income from operations reached $69.0 million. Net income for the quarter was $68.8 million, compared with $40.9 million in 2025. Adjusted EBITDA reached $108.4 million, and adjusted earnings per share was $1.52, compared with $1.09 the previous year.

Stride, Inc. (NYSE:LRN) provides an educational platform to deliver online learning to students across the US. It offers various services, including professional skills training, K-12 education, career learning, and talent development.

While we acknowledge the potential of LRN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.