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UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Capella Education Company on Weak Enrollment

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In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Capella Education Company (NASDAQ: CPLA), but lowered its price target from $34.00 to $31.00.

Deutsche Bank noted, “Weak enrollment continues to weigh on margin outlook. Despite the return to positive new enrollment growth, total enrollment continues to shrink, particularly in core grad-level programs, hindering margin expansion. Limited room for cost cuts places CPLA at the mercy of scholarships, new programs/redesigns, and brand initiatives to stabilize trends in 2H13 and turn things around, possibly by 2014. We lower 1Q and 2013 EPS from $0.79 to $0.63 (Street $0.77) and $3.02 to $2.51 (Street $2.76). Our Hold reflects a weak outlook for near term enrollment and earnings somewhat offset by high balance sheet cash /share.”

Capella Education Company closed on Tuesday at $31.56.

Latest Ratings for CPLA

Nov 2016Credit SuisseDowngradesOutperformNeutral
Oct 2016BMO CapitalDowngradesOutperformMarket Perform
Feb 2016Credit SuisseInitiates Coverage onOutperform

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Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings


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