D2L wins price target raise at National Bank

Following the company’s second quarter results, National Bank Financial analyst John Shao has raised his price target on D2L (D2L Stock Quote, Chart, News, Analysts, Financials TSX:DTOL).

On September 4, D2L reported its Q2, 2025 results. The company posted Adjusted EBITDA of (US) $4.2-million on revenue of $49.2-million, a topline that was up 11% year-over-year.

“Our second-quarter results demonstrate continued execution on our balanced growth and profitability plan, highlighted by strong growth in Annual Recurring Revenue, subscription revenue, and Free Cash Flow generation,” said John Baker, CEO of D2L. “Our year-to-date performance positions us for continued growth and meaningful Adjusted EBITDA margin expansion in the second half of the year. At the same time, we are reinforcing our commitment to innovation that empowers our customers to create greater impact, achieve better outcomes, and deepen the human connection to learning. In recent months, we have significantly expanded our products and solutions, both through internal development and acquisition, which gives us more opportunity to create even deeper relationships with our growing customer base.”

As reported in the Globe and Mail, Shao September 6 maintained his “Outperform” rating on DTOL while raising his price target on the stock from $14.50 to $16.00

“All in all, we believe D2L is executing its balanced growth strategy well and is on track to maintain double-digit growth while expanding its profit margins,” the analyst wrote. “If anything, FQ2 represents the kind of quarter with solid performance to potentially narrow the valuation gap relative to peers. Despite the 20-per-cent year-to-date return, we’d note the stock is still trading at a discount to its LMS [learning management system] peers. As the Company captures more market share and grows its bottom line, that valuation gap should narrow. We continue to like D2L for its strong attributes such as a high recurring stream and a stable but robust customer base.”