Wunderlich Securities: Education Management's Recovery Could be Slower than Expected

According to a research report released today, Wunderlich Securities is lowering its estimates on Education Management Corporation

based on the company's Q3 guidance and continued weak consumer confidence. In the report, Wunderlich Securities explained, “Regulatory issues caused the company to refrain from growth investments and likely had an unexamined beneficial effect on margins in FY11. This year, in addition to 150 new program roll-outs year to date, the company plans four or five new campuses, largely timed for FQ4. This should contribute to investor confidence in a solid enrollment recovery in the second half of the calendar year (F1H13).” Wunderlich Securities reiterates its Buy rating and $27 PT on Education Management, which closed Friday at $21.21.