Market Overview

UPDATE: J.P. Morgan Downgrades Strayer Education to Neutral, Lowers PT

Related STRA
On Heels Of DeVry Settlement, 19 AGs Sue DOE, DeVos Over For-Profit College Rules
Will DeVos' Revised Rules Favor For-Profit School Stocks?

In a report published Monday, J.P. Morgan & Co. downgraded its rating on Strayer Education (NASDAQ: STRA) from Overweight to Neutral, and lowered its price target from $110.00 to $55.00.

J.P. Morgan noted, “Friday morning STRA reported 3Q12 EPS of $0.36, above our estimate and STRA's guidance. 3Q12 new enrollments (starts) grew 4% y/y, a third consecutive quarter of growth. However, 4Q12 guidance of $1.43-1.45 is below prior consensus ($1.59) due to continuing enrollment challenges. STRA's 2013 outlook reflects no new campus openings, which impedes growth in our view. Also, STRA suspended its dividend for 2013. We had considered STRA's dividend unique in the sector. We like STRA's long-term focus on quality and superior student outcomes. However, given its growth and margin challenges, we are downgrading STRA to Neutral from Overweight. We think that low tuition schools (e.g., APEI, LOPE) will benefit in this environment.”

Strayer Education closed on Friday at $46.51.

Latest Ratings for STRA

Feb 2016BMO CapitalMaintainsOutperform
Feb 2016Credit SuisseInitiates Coverage onNeutral
May 2015Deutsche BankMaintainsHold

View More Analyst Ratings for STRA
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Downgrades Analyst Ratings


Related Articles (STRA)

View Comments and Join the Discussion!

Partner Center