UPDATE: JP Morgan Upgrades DeVry to Neutral on Diversification

JP Morgan upgraded DeVry

from Underweight to Neutral and raised the price target from $22.00 to $28.00. JP Morgan commented, "As we expected, 2QF13 undergraduate new enrollment (start) declines at DeVry University (DVU) (56% of revenues) remained weak at (13%) y/y. We now believe that DVU starts will not inflect until well into F2014, at the tail end of its peer group, due to DVU's relatively high tuition. That said, we were impressed by stellar results in the remaining segments and recognize that DV's diversification strategy is working. We appreciate DV's focus on balanced growth and high quality student outcomes, and upgrade shares of DV to Neutral from Underweight." DeVry closed at $26.12 on Wednesday.