UPDATE: BMO Capital Markets Raises PT on Bridgepoint Education Following WASC Accreditation Shift
In a report published Friday, BMO Capital Markets analyst Jeffrey M. Silber reiterated a Market Perform rating on Bridgepoint Education (NYSE: BPI), and raised the price target from $12.00 to $16.00.
In the report, BMO Capital Markets noted, “The gushing commentary from WASC (‘fundamentally transformed') clearly reflects the effort this company has made to shift its focus from inputs to outputs. While the accreditors' approval will certainly help establish the school's quality reputation, it still may take some time to convince potential students given the tarnish this brand has incurred. Although we still expect revenues and enrollment to decline into 2014, the earnings impact may not be as severe given the recent cost reduction and expected $85 million in annualized savings (beginning in 2014).”
Bridgepoint Education closed on Thursday at $15.92.
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