UPDATE: Credit Suisse Initiates Coverage on 2U on Multiple Positive Factors

In a report published Tuesday, Credit Suisse analyst Michael Nemeroff initiated coverage on

with an Outperform rating and $20.00 price target. In the report, Credit Suisse noted, “We Initiate Coverage of 2U (TWOU) with an Outperform Rating and a $20 Target Price: 2U enables nonprofit colleges and universities to bring their accredited degree programs online via a cloud-based software-as-a-service (SaaS) platform, with experiences and outcomes that match or exceed on-campus offerings. As the accredited degree programs 2U launches with higher education schools ramp and mature, we forecast steady long-term revenue growth and profitability. "We believe that TWOU shares could outperform our broader coverage universe due to increasing demand for, and market penetration of, the company's top quality software products and services.” 2U closed on Monday at $13.10.