Franklin Covey Co.

Franklin Covey delivered Q3 2026 revenue of $67.8M, returning to profitability with $3.1M net income. Barrington Research reaffirmed an Outperform rating with a $30 price target, and Roth Capital raised its target to $25 with a Buy rating, signaling confidence in the company's revenue recovery.

Despite the Q3 profit recovery, Franklin Covey cut its FY2026 sales outlook, and revenue of $67.81M came in below analyst expectations of $68.33M. Year-to-date results remain slightly negative, raising questions about whether the company can sustainably hit its revenue targets.

The stock's average analyst price target of $27.50–$31.00 implies over 50% upside from recent closing prices near $20.50. Recent upgrades from Wall Street Zen and National Bank Financial, combined with a P/E/G ratio of just 1.07, suggest the valuation may be justified by growth expectations.

Franklin Covey trades at a P/E ratio of 120.94, an exceptionally high multiple for a company with a market cap of just $232M and only $0.96 expected EPS for the full year. Weiss Ratings maintains a Sell rating, and the consensus has only recently moved to a Hold, reflecting valuation skepticism.

Franklin Covey shares crossed above their 200-day moving average, a technically positive signal. The stock has gained over 20% year-to-date, and improving analyst sentiment — with multiple recent upgrades and raised price targets — suggests growing institutional interest despite index changes.

Franklin Covey was dropped from both the Russell Microcap Value Benchmark Index and the Russell Small Cap Comp Value Benchmark, a development that could trigger forced selling by passive index funds and reduce the stock's visibility and liquidity among institutional investors.