Stride (LRN) PT Cut to $82 by BMO Capital Due to Platform Integration Failure, Maintains Market Perform

Stride Inc. (NYSE:LRN) is one of the cheap US stocks to buy according to analysts. On November 7, BMO Capital lowered the firm’s price target on Stride to $82 from $108, while keeping a Market Perform rating on the shares. This sentiment was posted when the company’s stock experienced a sell-off following the disclosure of a failed platform integration. However, BMO Capital noted that the company has avoided receiving non-renewal notices from its partners regarding this issue, attributing this stability to the goodwill it has established with these organizations.

In its FQ1 2026 earnings report, Stride reported strong financial growth that was partially overshadowed by operational issues due to a failed technology platform integration. While the rationale for the upgrade was to invest in platforms to support future scale, the implementation of both a front-end learning platform and a back-office administrative platform did not go smoothly, especially at the start of August 2025. Still, the company was able to generate $620.9 million, which was up 13% year-over-year, driven by strong demand that led to record enrollment growth and an increase in revenue per student.

The negative impact on enrollment was substantial: the company estimates that the platform implementation issues, combined with constraints on intake, led to ~10,000 to 15,000 fewer enrollments than what could have otherwise been achieved. Total enrollments for the quarter still grew by 11.3% from the prior year. Still, the company’s revenue increased by 13% year-over-year and reached $620.9 million, fueled by the Career Learning segment, where revenue was $241.5 million, up 21%.

Stride Inc. (NYSE:LRN) provides proprietary and third-party online curriculum, software systems, and educational services in the US and internationally.

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