UPDATE: Wunderlich Securities Maintains K12 Buy

Wunderlich Securities maintained its K12 (NYSE: LRN) Buy rating in a research report published today. Wunderlich Securities has a $35 price target on K12.

In the report, Wunderlich Securities states, "Consumer and political acceptance of elementary and secondary on-line education continues to grow, as K12's (LRN) student acquisition costs come down and legislative barriers increasingly fall. This tipping point suggests some acceleration in enrollment growth is possible even as recent investment spending subsides, allowing margins to re-inflate. However, growing mainstream acceptance also brings a new set of challenges for management (and risks for investors), as an expanding population of at-risk students pressures test scores, and requires additional diligence and resources to keep this population engaged and persistent."

Shares of K12 were trading at $31.56 at the time of posting, up 1.68% from Monday's market close.