Truist raises Huron Consulting stock price target on growth outlook

Truist Securities has increased its price target for Huron Consulting Group (HURN) stock to $220 from its previous $175 level. The firm maintains a Buy rating on the shares, which are currently trading at $193.35, near their 52-week high of $194.25. The price increase reflects Truist's strong optimism regarding the company's growth prospects in 2027, projecting revenue growth between 10% to 12%.

Key drivers of this growth outlook include organic growth of mid to high-single digits and inorganic contributions of 2 to 4 percentage points. This outlook surpasses the 9% consensus estimate from Wall Street. Truist anticipates a significant acceleration in digital growth, moving from 5% in the first half of 2026 to double-digit year-over-year growth in the second half. This is higher than the 6% consensus estimate.

The managed services segment is expected to grow and improve margins, with potential to capture 20% to 25% of revenue over time, up from the current 12%. Huron Consulting operates in high-demand end markets, particularly large health systems and top-tier universities, which are investing in solutions. The company's shift to outcomes-based pricing is expected to further enhance margins.

Despite the strong growth outlook, the stock is trading at 12 times 2027 EBITDA, which is lower than the pre-pandemic multiple of 18 times. The P/E ratio stands at 29, but InvestingPro analysis suggests the stock is overvalued at current levels. Subscribers to InvestingPro gain access to 15 additional exclusive insights, including analyst revisions and Huron's financial health score of GREAT.

Recently, Huron Consulting reported stronger-than-expected second-quarter 2026 results, with adjusted earnings of $2.46 per share, beating the consensus estimate of $2.17, and revenue of $465.6 million, exceeding forecasts. The company also raised its full-year guidance, driven by record demand in healthcare, education, and digital services.

Following these results, Truist Securities raised its price target for HURN shares from $155 to $175 and reiterated its Buy rating, citing growth in managed services. These developments underscore a positive business outlook for Huron Consulting, as assessed by Truist Securities.