Stride (LRN) is positioned for a "beat and raise" when it announces its fiscal Q3 results on April 29 as strong enrollment growth during the quarter is expected to exceed consensus and lead to a guidance increase, Morgan Stanley said in a Monday note.

"We think LRN's guidance and consensus estimates are too low, and expect positive revisions following the quarter," said the investment firm. Morgan Stanley estimates 237,000 average enrollments for the company in fiscal Q3, about a 6,000 sequential increase compared with the consensus of a 3,000 increase.

Stride, however, has "low visibility into forward enrollment growth sustainability" and the company's lack of disclosures affects investor confidence in its momentum, Morgan Stanley noted.

Morgan Stanley raised its price target on Stride stock to $141 from $117 and reiterated its equal-weight rating on the company.

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