Piper Jaffray Upgrading Corinthian Colleges

Piper Jaffray is out with a research report on Corinthian Colleges (NASDAQ: COCO) and is upgrading shares to Neutral and raising its price target to $5 from $3.

In a note to clients, Piper Jaffray writes, "While Corinthian Colleges continues to face significant near-term operating and regulatory challenges, we are increasingly confident that enrollment and earnings trends are close to a bottom. Equally important, we are increasingly confident the company can return to profitability over the next several quarters, aided by aggressive cost cutting efforts. We upgrade our rating to Neutral from Underweight."

Shares of COCO closed at $2.18 yesterday.