UPDATE: Citigroup Downgrades DeVry to Neutral on Negative FQ4 Pre-Announcement

Citigroup reduced its rating on DeVry

from Buy to Neutral and reduced its price target from $40 to $25. Citigroup commented, "After the close, DV announced a material miss Q4 (June) with Rev/EPS or $507MM/$0.45 vs. the Street at $517MM/$0.79, its third miss in 12 months. While the company attributed the shortfall to increasing use of scholarships, higher advertising costs and investments, we are concerned that macro slowdown, declining consumer confidence, and employment uncertainty make an enrollment recovery less likely in the near term." DeVry closed at $27.56 on Monday.