UPDATE: Wunderlich Securities Reduces Capella Education PT

Wunderlich Securities reduced its Capella Education

price target from $37 to $32 in a research report published today. Wunderlich Securities has a Hold rating on Capella Education shares. In the report, Wunderlich Securities states, "We remain cautious toward Capella (

) shares following the company's announcement of a new $100 million, five-year revolver. This replaces the company's previous $10 million line of credit and adds liquidity to the $170+ million the company has in cash and short-term investments. We believe the revolver most likely signals a desire to increase the pace and scale of its acquisition activity. Though we credit Capella for preparing to act boldly in the face of a significant retrenchment in its business, we are unsure whether a largescale investment can address its issues. Put another way, we are unsure that the company can put $270 million to work effectively." Shares of Capella Education were trading at $28.41 at the time of posting, up 7.17% from Monday's market close.