UPDATE: Morgan Stanley Upgrades Capella Education to Overweight, PT at $50

Morgan Stanley raised its rating on Capella Education

to Overweight and raised its price target to $50 as it expects a company turnaround in 2012. Morgan Stanley says, "CPLA's proactive moves on program quality led to worse than peers start declines and the loss of its premium multiple in ‘11. However, we believe CPLA is now one of the best positioned in the industry. EPS can outperform and the multiple should re-rate. Raising EPS to $3.30." CPLA closed at $41.23 a share on Friday.