Wunderlich Securities Maintains Buy Rating and $12 PT on National American University Holdings

A report from Wunderlich Securities reiterates its Buy rating and $12 price target on National American University Holdings NAUH In the report, Wunderlich Securities writes, “Greater regulatory care at the state and accreditor level has begun to impose a higher absolute cost on National American University Holdings (NAUH) as it navigates a period of aggressive expansion into new markets and new programs. And the impact of this regulatory slowdown continues to climb. Yet the ROI of school openings appears sound with a solid benefit to on-line recruiting as well. The net effect will likely be to slow the rate of margin expansion in FY12. However, in FY13, when the rate of expansion normalizes, we expect margin expansion to surge”. NAUH closed yesterday at $7.80.