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UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Education Management Corp.

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In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Education Management Corp. (NASDAQ: EDMC), and slightly raised its price target from $3.00 to $4.00.

BMO Capital Markets noted, “As enrollment declines continue to be significant, it remains difficult to forecast a trough in revenues. While the company is aggressively cutting costs, we believe enrollment stabilization backed by confidence in sustained enrollment growth is the most important catalyst to this stock. Management cited improving ground-based new student enrollment trends at its smaller units, but this will likely not be strong enough to offset overall total enrollment declines. In the meantime, we believe EDMC should continue to generate enough EBITDA to meet interest requirements on its heavy debt load, though future refinancing will likely come at a cost.”

Education Management Corp. closed on Thursday at $4.09.

Latest Ratings for EDMC

Oct 2014Wells FargoUpgradesUnderperformMarket Perform
Feb 2014BMO CapitalUpgradesUnderperformMarket Perform
Nov 2013BMO CapitalDowngradesMarket PerformUnderperform

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