UPDATE: Deutsche Bank Reiterates Sell Rating, Lowers PT on Strayer Education
In a report published Monday, Deutsche Bank reiterated its Sell rating on Strayer Education (NASDAQ: STRA), but lowered its price target from $50.00 to $44.00.
Deutsche Bank noted, “We maintain our Sell as we think new enrollment deteriorates into 2013. We lower 4Q EPS from $1.48 to $1.45 (prior Street at $1.59) but raise FY13 EPS from $4.28 to $4.36 (prior Street at $5.67) on modestly better rev/student and lower costs due to weaker new enrolment. New enrollment growth was +9% in Summer but only +4% this Fall. By Winter, STRA will cycle the 1-2pt acquisition benefit, plus as 2013 progresses STRA will go from its current +9% YoY campus growth to flat.”
Strayer Education closed on Friday at $46.51.
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Tags: Deutsche Bank