UPDATE: Gabelli & Co Reiterates Buy, Lowers '12 Target to $23 on Universal Technical Institute

Gabelli & Co maintains its Buy rating on Universal Technical Institute, Inc. UTI and lowers its 2012 target price from $27 to $23 on lower than expected student starts. Gabelli comments, “UTI is adjusting its marketing to obtain higher quality leads. However, fewer inquiries and lower show rates reflect economic pressure and debt aversion of prospective students. The company is pointing toward a low teens decline in the average population, which translates into a mid/high single digit revenue decrease. Margins are also expected to contract.” UTI closed at $12.16 per share on Tuesday.