- Scholastic (NASDAQ:SCHL) finished up 3.6% today, following an Oppenheimer launch at Outperform as a "catalyst-rich investment opportunity."
- It has a $50 price target; Scholastic shares just closed at $40.82, implying 22.5% upside from here.
- Scholastic gets a stable revenue stream from one of the strongest markets left in print -- school books -- and the company has about a 10% unlevered free cash flow yield estimated for fiscal 2017, with a mid-single-digit revenue growth profile, Oppenheimer says.
- What's more, the company could sell three stories of its Broadway headquarters in New York City for more than $350M -- almost $250M after taxes, or $7.31/share. All in all, Oppenheimer thinks between the real estate monetization, free cash flow and cash on hand (about $8/share), Scholastic could return $400M in cash (about 30% of market cap) over the next 12 months.