UPDATE: Barrington Research Cuts PT to $17 on Education Management; Lower 2013 Expectations

Barrington Research lowers its price target from $25 to $17 per share on Outperform-rated Education Management (NASDAQ: EDMC) as the it reduces the company's earnings estimates for 2013. Barrington Research comments, "While the stock lacks a near-term catalyst, its valuation discounts the current environment, trading at 5.2x the consensus 2012 EBITDA estimate versus the peer-group average of 4.2x and 10.8x consensus calendar 2012 earnings estimate (versus the peer-group average of 14.3x). As such, we are maintaining our OUTPERFORM investment rating, as we expect the stock to work higher over time as visibility improves. EDMC is a diversified provider of high-quality postsecondary education programs that. To reflect our lower FY/13 earnings expectations, we are lowering our 12-month price target to $17 (7x forward EBITDA) from $25, representing 50% upside from current levels."EDMC closed at $11.37 on Thursday.