UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on DeVry on FY3Q13 EPS

In a report published Wednesday, BMO Capital Markets analyst Jeffrey M. Silber reiterated a Market Perform rating on DeVry DV, and raised the price target from $29.00 to $34.00. In the report, Silber noted, “On Tuesday after the close, DV reported FY3Q13 EPS of $0.90 (excluding one-time charges) versus $1.00 - well above the consensus $0.82 and our $0.73 estimates. Given the lack of quarterly guidance, there was a wide range of estimates, but most erred on the conservative side. The “upside surprise” (at least versus our estimates) was mainly margin driven, as the company's cost-cutting efforts bear fruit. Management increased expectations for annualized cost savings, now at $100 million – up from $50 million when the year began. However, the company continues to ‘shrink its way to greatness' as DeVry undergraduate students (the largest portion of revenue and enrollment) took a step back in the quarter, with March starts down 21.2% y/y and total enrollment down 16.5% y/y.” DeVry closed on Tuesday at $34.03.