Learning Technologies (LSE:LTG) is a London-based digital learning and talent management company. The company proudly claims to have a strong balance sheet that’s allowed it to make “select accretive” acquisitions over the years.

Moreover, the recent upgrade in the scale of its business following the successful integration of GP Strategies – a global workforce solutions provider – has been very beneficial. It’s expected to lead the digital learning company towards a growing, addressable market in digital learning and talent management.

While the company’s management has expressed satisfaction with the moderate business momentum, the share performance has been relatively lacklustre. So, let’s explore more about will the Learning Technologies share price bounce.

Key Points

• Learning technologies continue to see moderate business momentum with a strong balance sheet.
• Learning Technologies recently acquired GP Strategies, a global workforce solutions provider.
• The digital learnings company announced a full-year dividend of 1.6p for its 2022 fiscal year.

What does Learning Technologies do?

Learning Technologies Group is a market leader in the fast-growing workplace digital learning and talent management market. It offers large organisations a new approach to learning and talent in a business world driven by digital transformation.

In the recent announcements, the company said it had seen moderate revenue growth in the first quarter of 2023. Also, it is expected to deliver high single-digit adjusted EBIT growth in the year, supported by a strong pipeline. The pipeline included a number of significant long-term contracts for GP Strategies that were at an advanced stage.

The bull case for the Learning Technologies share price

The stock of Learning Technologies enjoyed a bullish cycle from the last quarter of 2020 till September 2021, when it hit a peak of 235.8p. During the period, the stock appreciated by almost 100%.

The company’s “resilient model”, with high levels of recurring revenues from diversified end markets, combined with cross-selling opportunities from its greater scale, has been contributing towards the fast-paced growth.

The bear case for the Learning technologies share price

Since the Learning Technologies share price hit its recent peak, it’s been on a bearish run. From the peak of 235.8p, the stock has dropped to 94.35p reporting a 60% loss in share value. No doubt this drop in value is spread over a period of more than one and a half years. But as an investor, this continuous drop in the Learning Technologies share price is concerning.

Despite being a market leader in digital learning and talent management, one of the major challenges it is facing is adapting to changes. These changes are both construct-wise and management-wise. While the stringent HR policies have been there for as far as we know, the shift Learning Technologies is bringing is not welcome by all.

Learning technologies Share price prediction

While the bearish streak of digital learning stock seems never-ending, analysts are optimistic about the recent future of the Learning Technologies share price.

The 12-month target for the Learning Technologies share price is 145p, with a high target of 205p and a low target of 120p. Moreover, analysts have a unanimous consensus that the share is expected to outperform in the near future. That’s obviously an encouraging sign. But as always, forecasts have a habit of being wrong, so they need to be taken with a giant pinch of salt.

Should I buy Learning Technologies shares today?

2022 brought transformational changes for the company, with profits doubling thanks to the integration of GP Strategies. This has led to a new commitment to a progressive dividend policy with a 64% bump in shareholder payouts year-on-year¹.

With that in mind, while there are still challenges to overcome, I’m personally optimistic about the long-term potential of this firm. Therefore, I’m considering adding it to my portfolio once I have more capital at hand.

I believe all these are contributing towards an excellent comeback from the company. And I expect the Learning Technologies share price to bounce pretty soon.

Article sources

1. Share Cast. “Acquisitions underpin full-year growth for Learning Technologies“

Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.