Universal Technical Institute, Inc. (“UTI” or the “Company”) is a for-profit, automotive trade school on the verge of a breakout.
Due to the absence of analyst coverage and index-exclusion, we believe the market is overlooking the Company’s spectacular turnaround progress.
The Great Recession was a huge enrollment catalyst for UTI. Given the Company’s operational leverage and enrollment capacity, we expect a future slowdown to be highly accretive for shareholders.
Many leading indicators suggest the U.S. economy is likely to enter recession soon, which would be a boon to UTI and provide a hedge to most portfolios.
UTI’s public ownership structure, elevated graduation rates, education quality, and long-standing industry partnerships help offset potential regulatory risk.
UTI is an accredited, postsecondary education company with a focus on automotive services. Its customers include high school students looking for an alternative to a college education and adults seeking a career change. The