UPDATE: Bank of America Reiterates Underperform Rating, Lowers PT on ITT Educational Services Following 2Q14 10-Q Filing

In a report published Thursday, Bank of America analyst Sara Gubins reiterated an Underperform rating on

, but lowered the price target from $8.00 to $7.00. In the report, Bank of America noted, “After the close, ESI filed its delayed 2Q14 10-Q. 2Q GAAP EPS of $0.02 was $0.16 below consensus. 2Q14 included $8.4mn in pre-tax legal fees and $9.1mn in provisions for PEAKS student loan losses (combined $0.50/sh assuming a 32% tax rate). We are lowering estimates on lower rev./student and higher interest expense. We have kept enrollment assumptions unchanged. Our estimates include existing legal fees and provisions for PEAKS loan losses but not future fees or provisions.” ITT Educational Services closed on Wednesday at $8.85.