UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Names $40 PT on DeVry Education Group Following 1Q15 EPS Beat

In a report published Friday, Morgan Stanley analyst Suzanne E. Stein reiterated an Equal-Weight rating on

, and named a $40.00 price target. In the report, Morgan Stanley noted, “DV beat on EPS but more importantly disappointed on starts.The decline in effectiveness of the career catalyst scholarship (which failed to drive starts in the quarter) and the experimentation with the new ‘completer scholarship' highlight the pressure on revenue per student across the sector. DV's diverse portfolio of assets provides some stability as growing international and medical segments offset DVU enrollment declines but we still think a turnaround at DVU is needed to move shares higher. We continue to expect choppy results and stay Equal-weight.” DeVry Education Group closed on Thursday at $45.92.