UPDATE: Deutsche Bank Initiates Hold, $25 PT on Capella Education

Deutsche Bank initiates its coverage on Capella Education

with a rating of Hold and a price target of $39 on margin and growth risks. Deutsche Bank comments, "With a 19 year history of providing distance and online-only education, Capella Education is a well-established provider of graduate degrees. However, relatively high tuition rates, a nascent branding campaign and mounting competitive pressure from traditional universities and For Profit peers pose a risk to growth and margins. While we see some upside to shares, it is offset by concerns over longer term positioning and outlook and more compelling opportunities elsewhere." CPLA closed at $36.86 a share on Monday.