UPDATE: Bank of America Raises Price Target on Corinthian Colleges to $4.25

According to Bank of America, Corinthian Colleges (NASDAQ: COCO) price target is raised to $4.25.

Bank of America said that after a $0.02 beat in 2Q (Dec) and encouraging commentary about start trends and cost management ($150mn in annualized cost savings), it is increasing FY12E EPS from $0.15 to $0.31 (vs. guidance of $0.30-0.35). “We are also increasing FY13 by $0.08 to $0.51. This assumes 4% revenue growth in FY13 and 45% incremental margins. COCO is currently running at about 50% capacity, according to management.”

Corinthian Colleges closed yesterday at $4.23.