UPDATE: Stifel Nicolaus Initiates K-12 at Buy on Growth, Digital Exposure

Stifel Nicolaus initiated coverage on K-12 LRN with a Buy rating and a $26 price target. Stifel Nicolaus said, "K-12 Inc is the largest and only pure play provider of online learning to the Kindergarten through 12th grade market; and is positioned to facilitate school choice and participate in the growth of online and individualized learning and the shift to digital delivery of educational content. Growing acceptance of this modality and recognition of its potential for educational efficacy and cost efficiency is driving the market. We believe these factors will eventually overtake the resistance to changing the failing K-12 educational paradigm and the controversy associated with the use of a for-profit model." K-12 closed at $20.26 on Wednesday.