Powerschool Stock Forecast and Analyst Perspectives

Powerschool stock has been a topic of interest for many investors, with some analysts predicting significant growth in the coming years.

In 2020, the company's revenue reached $1.2 billion, a 20% increase from the previous year.

This growth can be attributed to the increasing demand for educational technology, as more schools and districts turn to digital solutions for teaching and learning.

Powerschool's suite of products, including its flagship product PowerSchool SIS, has been a key driver of this growth.

Analysts at Baird have a "neutral" rating on Powerschool stock, with a price target of $45 per share.

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Analysts believe PowerSchool Holdings stock is likely to perform similarly to the overall market, with an average rating of "Hold" from 12 stock analysts.

The analyst community has been actively evaluating PowerSchool Holdings, with recent actions including a thorough analysis of recent analyst actions.

Arvind Ramnani from Piper Sandler maintains an Overweight rating for PowerSchool Holdings, with a current price target of $29.00.

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Gabriela Borges from Goldman Sachs raises her rating to Buy, with a current price target of $30.00.

Arvind Ramnani from Piper Sandler raises his rating to Overweight, with a current price target of $29.00.

Here's a summary of recent analyst actions:

Insiders have been selling shares of PowerSchool Holdings, with recent sales worth $657,292 and $664,094.

Analysts have also been downgrading PowerSchool Holdings, with Macquarie, Jefferies, and Piper Sandler downgrading the stock to Neutral or Hold from Buy or Overweight.

As we dive into the financial projections for Powerschool stock, it's essential to understand the potential growth in earnings per share (EPS).

EPS Growth is a critical metric to consider, and Powerschool's projections are impressive. In 2025, EPS is expected to grow by 32.4% for the high scenario, and by 22.5% for the average scenario.

Here are the EPS growth projections for Powerschool stock:

The low scenario shows a significant decline in EPS growth, with a 0% growth rate in 2026.

PowerSchool is a leading education technology company that provides a range of products and services to schools and districts.

The company was founded in 1997 by Greg and Lisa Van de Velde, and it has since grown to become a global leader in the education technology space.

PowerSchool's headquarters is located in Folsom, California, and it employs over 2,000 people worldwide.

The company's flagship product is its student information system, which is used by over 45 million students and 40,000 schools in the United States and around the world.

PowerSchool went public in 2021, listing on the New York Stock Exchange under the ticker symbol PWSC.

PowerSchool stock has been making headlines recently. PowerSchool Holdings, Inc. announced that Bain Capital Private Equity, LP, Onex Corporation, and Vista Equity Partners Management, LLC completed the acquisition of PowerSchool Holdings, Inc. from Onex Corporation, Vista Equity Partners Management, LLC, and other shareholders on September 30, 2024.

The acquisition was a significant move for PowerSchool, but not the only news surrounding the company. PowerSchool Holdings, Inc. was dropped from the S&P TMI Index, the S&P Software & Services Select Industry Index, and the S&P Global BMI Index on the same day.

On September 27, 2024, PowerSchool Holdings, Inc. made another notable announcement, partnering with the Houston Area School District to bring Powerbuddy, an AI assistant, to classrooms in Texas. This move aims to enhance the educational experience for students.

In addition to these developments, PowerSchool Holdings, Inc. has been expanding its AI capabilities in various regions. The company expanded AI in the classroom across Latin America and the Middle East and Africa on August 14, 2024.

Here's a summary of the recent news surrounding PowerSchool Holdings, Inc.:

PowerSchool's growth in the education technology sector has made it an attractive investment opportunity.

As of the latest report, PowerSchool's revenue has increased by 26% year-over-year, driven by the growing demand for cloud-based education software.

Investors can consider a long-term approach, focusing on the company's steady growth and expanding market share.

PowerSchool's strong partnerships with major education institutions have contributed to its success, with over 40% of the US student population using its products.

A diversified portfolio can also include other education technology companies, such as Blackboard and Canvas, to mitigate risk and maximize returns.

Investors should keep an eye on PowerSchool's innovative products, such as its assessment and analytics tools, which have shown significant traction in the market.

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India's education sector has been a key driver of the country's economic growth, with a large and growing demand for educational technology.

The Indian government has been actively promoting the adoption of digital technologies in education, with initiatives such as the National Education Policy 2020, which aims to make education more accessible and inclusive.

India's education market is expected to reach $100 billion by 2025, driven by the growing demand for online learning platforms and educational software.

The country has a large and young population, with over 50% of its citizens under the age of 25, which creates a huge market for educational technologies.

PowerSchool, a leading education technology company, has a significant presence in India, with a range of products and services that cater to the needs of schools and educators.

Powerschool's Widening Earnings Loss is a significant concern for prospective investors.

The company incurred a first-quarter 2024 net earnings loss of $22.848 million, which is significantly wider than the $14.813 million loss from the year-earlier quarter.

This widening loss is a serious concern, and it's essential to see some bottom-line improvement in the coming quarters.

Powerschool's net earnings loss is a stark contrast to the 16% year-over-year revenue growth to $184.967 million in Q1 2024.

The company guided for full-year 2024 revenue of $786 million to $792 million, implying moderate revenue growth compared to the first-quarter result.

However, the focus should be on improving the bottom line, and investors should closely monitor Powerschool's financial reports for any signs of improvement.

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