Wunderlich Lowers PT on Universal Technical Institute to $18

Wunderlich Securities has published a research report on Universal Technical Institute UTI and has lowered the price target from $21 to $18. In the report, Wunderlich writes, "We are maintaining our Buy rating on shares of Universal Technical Institute (UTI), but lowering our price target to $18 from $21. We now expect more margin compression than we had previously modeled. However, the resiliency of the stock in the wake of missed results is a sign of what we can expect as other companies are able to credibly point to a positive turn in starts. The rate of start decline has moderated and discussion of flat starts in the current quarter is all investors needed to hear to bid the shares higher despite at least one downgrade. With rising starts, we expect valuations to become decoupled from near-term earnings and to become focused instead on potential peak earnings." Wunderlich maintains its Buy rating on Universal Technical Institute, which is currently trading down $0.15 from yesterday's $12.68 closing price.