UPDATE: Citigroup Lowers PT on Career Education Corp to $7

According to a research report this morning, Citigroup lowers its PT on Career Education Corp.

from $10 to $7 following another weak 1Q. Citigroup stated, “With the shares trading barely over our year-end cash value estimate of $5, the market is clearly questioning the long-term equity value of this troubled asset. We have materially lowered our outlook based on 1Q results and enrollment trends: 2012 & 2013 Rev/EPS drop to $1.54B/$0.20 & $1.41B/$0.45 (down from $1.60B/$0.62 & $1.58B/$0.80). Visibility is extremely limited given all the near-term challenges that the company faces. Our target price drops to $7 from $10 reflecting the average of our P/E and EV/EBITDA derived target prices of $5 and $9, respectively.” Career Education Corp closed yesterday at $6.43 as Citigroup maintains its Neutral rating.