ITT Educational Services Downgraded (ESI)
April 26, 2010 9:41 AM
Credit Suisse this morning downgraded ITT Educational Services (NYSE: ESI) to Neutral from Outperform just two weeks after upgrading the company.
The firm says it is lowering its price target to $110 from $135. Credit Suisse believes there is greater uncertainty on Gainful Employment and concern about countercyclicality. Education stocks have been under pressure lately as the government has looked for stricter rules to govern educational institutions.
U.S. Education Secretary Arne Duncan has said he planned to issue proposals aimed at ensuring that vocational schools provide the training needed for students to find gainful employment without racking up excessive debt.
Education companies like ITT have benefitted from the weak labor market as more people return to school in the hope that a better degree with land them a better job.
Shares of ITT are down $4.28, or 3.8%, to $107.5 in pre-market trading.
