UPDATE: Topeka Capital Markets Downgrades DeVry to Hold on FQ4 Pre-Announcement

Topeka Capital Markets lowered its rating on DeVry

from Buy to Hold and reduced its price target from $40 to $23. Topeka Capital Markets commented, "Given our bearish view on the overall industry, our Buy rating on DeVry was more of a relative call, based on the Company's lower regulatory risk and strong capital flexibility versus peers. Furthermore, we had assumed that estimate revisions across the Street had come down far enough, and that weak operating expectations had been mostly reflected in the shares. Clearly, we were too early, and based on last night's preannouncement, we expect the Company to continue to face near-term challenges from an operational and investor-sentiment standpoint." DeVry closed at $27.56 on Monday.