UPDATE: Citi Raises ITT Educational Services' PT

According to a research report published this morning, Citi has increased ITT Educational Services'

PT from $65 to $70. In the report, Citi said, "1) A solid beat quarter (though not clean); 2) Mgmt says New starts could turn positive in 2H12; 3) Placement rates and starting salaries increased; and 4) More Buybacks… and more to come. On the Negative side, 1) No PEAKS-like Private loan and Bad Debt set to increase; 2) New Starts were weak; 3) Persistence, though better than expected, dropped 110bps Y-Y; and 4) Material margin deleverage of 730bps despite efforts to control costs." Citi maintains its Neutral rating on ITT, which is currently trading at $65.60.