Grand Canyon University Wins Lawsuit Dispute, Analysts Predict 8.09% Upside

The FTC has dropped its lawsuit against Grand Canyon University (LOPE) following successful court decisions and the Department of Education reversing a $37.7 million fine. Analysts predict a potential 8.09% upside, with a current average price target of $213.33, while GuruFocus metrics suggest a possible downside of 12.29% based on the GF Value estimate. The university's nonprofit status has been reaffirmed, potentially bolstering investor confidence.

The Federal Trade Commission (FTC) has dismissed its lawsuit against Grand Canyon University (GCU), following a series of successful court decisions and the Department of Education's reversal of a $37.7 million fine. The FTC's action comes after GCU secured victories in multiple legal battles, including a recent win in the U.S. Ninth Circuit Court of Appeals against the Department of Education. The university's nonprofit status has been reaffirmed, potentially bolstering investor confidence.

Analysts predict a potential 8.09% upside for GCU's stock, with a current average price target of $213.33. However, GuruFocus metrics suggest a possible downside of 12.29% based on the GF Value estimate. The reversal of the lawsuit and the reaffirmation of GCU's nonprofit status may influence investors' perceptions of the university's financial health and future prospects.

GCU's President Brian Mueller expressed satisfaction with the FTC's decision, stating that the accusations were false and that GCU had always gone above and beyond in its disclosures. Mueller also noted that the university had survived years of scrutiny and continued to thrive, attributing its resilience to the strength and dedication of its faculty, staff, students, and families.

The FTC's dismissal of the lawsuit marks the end of a years-long battle regarding GCU's nonprofit status and alleged deception regarding the cost of its doctoral programs. The university had previously faced investigations and lawsuits from multiple federal agencies, including the Department of Education and the IRS. GCU's legal victories and the reversal of the $37.7 million fine by the Department of Education have helped to clear its name and strengthen its position as a leading Christian university.

References:
[1] https://www.christianpost.com/news/ftc-drops-all-aspects-of-lawsuit-against-grand-canyon-university.html
[2] https://www.morningstar.com/news/pr-newswire/20250815ny52976/ftc-lawsuit-vs-grand-canyon-dismissed-against-all-parties