Wunderlich Securities Has Buy on ChinaCast Education

Wunderlich Securities is out with a research report on ChinaCast Education Corporation

and it has a Buy rating and a $12 price target on shares. In a note to clients, Wunderlich Securities writes, "We reaffirm our Buy rating and $12 price target on the shares of ChinaCast. CAST seems to be reacting to two announcements and a shareholder letter recently issued by the company. The first announcement is a poison pill measure the second is that board member Ned Sherwood had been removed from the audit committee (but remains on the board) and that two additional board members have been named. The third item is a shareholder letter intended to address these issues. After speaking with the company, we do not believe that these announcements are a reason to sell and we believe investors are overreacting to the news." Shares of CAST are up 2 cents to $2.60.