U.S. textbook publisher Houghton Mifflin Harcourt Co. may see improvement in its shares because of cost cuts and investment in its business, Barron's said.

The market for state textbook adoption programs, which is cyclical, was weak in 2016, but is expected to rebound over the next few years, Barron's said.

Houghton Mifflin, which has a 40 percent share of the market, is likely to be a prime beneficiary of the rebound, the publication said in a story on Friday.

Higher sales in the California reading program have also helped drive Houghton Mifflin's sales, Barron's said.

Houghton Mifflin in February named a new chief executive, John Lynch Jr.. The company's stock closed at $12.50 on Friday.

Barron's said the publisher's stock could have plenty of upside because of increasing revenue from digital educational materials, which the company has made a key priority.