UPDATE: Deutsche Bank Lowers PT on Capella Education on Mixed Factors
In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Capella Education Company (NASDAQ: CPLA), but lowered the price target from $64.00 to $60.00.
In the report, Deutsche Bank noted, “Enrollment remains on track, little change to estimates. Negative trends in total enrollment continue to ease and remain on track to turn positive by YE 2014. However, investments in new degree programs, including FlexPath, brand building, and RDI continue to weigh on margins. We raise 2Q14E EPS from $0.80 to $0.83 (prior Street $0.84) and adjust 2014 EPS by 4 pennies from $2.83 to $2.87 (prior Street $2.95) on benefits from better persistence. Our Hold reflects declining enrollment in core grad programs and volatile new enrollment trends, offset by a relatively full valuation.”
Capella Education Company closed on Tuesday at $57.23.
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