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UPDATE: BMO Capital Raises PT on K12 Following FY4Q13 EPS Report

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K12 Inc. is Expanding in Midst of Headwinds and Changing Dynamics

In a report published Monday, BMO Capital Markets analyst Jeffrey M. Silber reiterated an Outperform rating on K12 (NYSE: LRN), and raised the price target from $29.00 to $40.00.

In the report, BMO Capital Markets noted, “This note follows up on this morning's reported FY4Q13 EPS of $0.06 vs.$0.04 -- above the consensus estimate of $0.03 and our estimate of $0.02 (management does not provide quarterly EPS guidance). While management does not plan on providing FY2014 guidance until mid-October (likely the week of October 14), it did say it was comfortable with current consensus estimates. Given the strong pipeline of new schools and expanded caps for the year, we believe this guidance (at least at the top line) may prove to be conservative, although we do not believe the guidance will be significantly more bullish in October, as management will likely set the bar low. Though the sharp rise in the stock today could be driven by a short squeeze, we nevertheless expect more upside for this name, though it could give back some of these gains in the short term.”

K12 closed on Friday at $36.31.

Latest Ratings for LRN

DateFirmActionFromTo
Oct 2014Barrington ResearchDowngradesOutperformMarket Perform
Aug 2014Wells FargoDowngradesOutperformMarket Perform
Aug 2014Stifel NicolausDowngradesBuyHold

View More Analyst Ratings for LRN
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Posted-In: BMO Capital Markets Jeffrey M. SilberAnalyst Color Price Target Analyst Ratings

 

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