UPDATE: BMO Capital Lowers PT on Career Education Corp. on 4Q12 Losses
In a report published Monday, BMO Capital Markets reiterated its Market Perform rating on Career Education Corp. (NASDAQ: CECO), but slightly lowered its price target from $4.00 to $3.00.
BMO Capital Markets noted, “CECO continues to move forward with its restructuring efforts of closing down campuses and reducing costs. We expect this to be a multiyear effort and that visibility on underlying growth trends will be relatively low during this period, giving us little confidence in our ability to make accurate forecasts absent guidance from management. While CECO is unencumbered by debt, we believe the burdens of teaching-out locations and operating under reduced demand, combined with restricted cash requirements for letters of credit, will place added stress on cash balances in the coming year.”
Career Education Corp. closed on Friday at $3.00.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: BMO Capital Markets