UPDATE: Credit Suisse Downgrades Higher One Holdings to Neutral, Lowers PT

In a report published Wednesday, Credit Suisse downgraded its rating on Higher One Holdings

from Outperform to Neutral, and lowered its price target from $15.00 to $12.00. Credit Suisse noted, “We are downgrading ONE to Neutral from Outperform and lowering our TP to $12 from $15, or 15x our 2014E adj. EPS. While we like ONE's market position in the underpenetrated higher education end market, a lack of visibility related to enrollment and business trends has reduced our confidence over the intermediate term. Following a modest decline in public college enrollment in 2011, current trends suggest that for the second year in a row enrollment will decline, something not seen in over 30 years. Coupled with declines in funds disbursed, revenue per account is likely to remain under pressure through 2013. Given the significance of the fall semester, we see few positive catalysts over the near-term. We expected a more stable environment relative to 11, we were clearly too optimistic.” Higher One Holdings closed on Tuesday at $12.16.