UTI Stock Forecast & Price Target

Universal Technical Institute Inc. is poised for continued strong financial performance, bolstered by its North Star Strategy, which is projected to achieve approximately 10% revenue compound annual growth rate (CAGR) and expand adjusted EBITDA margins to around 20% by fiscal year 2029. The strategy includes a combination of 5-6% same-store growth and the introduction of new programs as well as new campuses, indicating robust demand for its educational offerings. Furthermore, the stock has demonstrated substantial appreciation, reflecting confidence in its future earnings potential, as evidenced by its current trading multiples exceeding those of its postsecondary education peer group.

Universal Technical Institute Inc. is projecting a decrease in its FY/26 adjusted EBITDA to $115.1 million, reflecting a margin contraction to 12.8% from the previous estimate of 15.3%, alongside a lowered GAAP EPS estimate of $0.90, which represents a 13.5% decrease year-over-year. Additionally, the upcoming fourth quarter is expected to demonstrate negative performance indicators, with adjusted EBITDA declining by 2.6% year-over-year and GAAP EPS expected to plunge 29.4% year-over-year, highlighting ongoing financial challenges. This deterioration in key financial metrics, alongside anticipated growth investments that may not yield immediate returns, contributes to a negative outlook for the company's stock.