UPDATE: Deutsche Bank Initiates Sell, $50 PT on Strayer Education on Non-Profit Competition

Deutsche Bank initiated coverage on Strayer Education

with a Sell rating and a price target of $50 a share. Deutsche Bank said, "Strayer's corporate alliances and community college relationships provide the University with a high quality student, as shown by Strayer's better regulatory metrics. But Strayer's high tuition cost has forced it to start discounting to grow. We think discounting continues as new nonprofits come online and existing ones use their typically better brands and lower price points to gain share. Due to Strayer's premium valuation and our below consensus estimates, we initiate with a Sell and $50 price target." Strayer Education closed at $69.42 on Thursday.