UPDATE: Bank of America Lowers Career Education's PO

According to a research report published this morning, Bank of America has lowered Career Education's CECO PO from $7 to $6.50. In the report, Bank of America said, "2012 & 2013 will be challenge years for CECO given numerous issues, including weak student demand, low job placement rates, & 90/10 concerns (schools can't receive more than 90% of revenue from federal financial aid), in our view. Management is not providing guidance given limited visibility, but it expects the career schools (Art & Design, Culinary, Health) to operate at a loss of $100-120mn in 2012. Our forecasts assume 18% start and revenue declines in 2012 and 3% start growth in 2013 but 3% revenue declines." Bank of America maintains its Underperform rating on Career Education, which closed Friday at $6.21.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsBank of America
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!