Wunderlich Securities Maintains Education Management Corporation's Buy Rating, $27 PT
Wunderlich Securities maintains Education Management Corporation's (NASDAQ: EDMC) Buy rating and $27 price target following news of layoffs at the company's online division in a research report out today.
In the report, Wunderlich Securities writes, "Layoffs last week at Education Management's (EDMC) online division lead us to conclude that there could be some downside risk to Wednesday's Q2 earnings report. The transition to borrower-based lending has been more problematic at AIOnline and Argosy Online and could have contributed to performance below expectations. Yet the narrow ownership of the stock is likely to prevent a dramatic negative reaction in the share price as the company's stock repurchases effectively respond to and correct negative pressure."
Shares of Education Management Corporation are currently at $25.91, up 0.02% from Friday's market close.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.