UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Grand Canyon Education on Improving Outlook

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Grand Canyon Education LOPE, and raised its price target from $25.00 to $29.00. Deutsche Bank noted, “Raise target from $25 to $29 on improving near and longer-term outlook. LOPE reported better than expected 4Q12 EPS of $0.46 on high single digit start growth and 19% enrollment growth. The third consecutive Q of double digit enrollment gains and a positive 2013 outlook, due to demand in LOPE's core SW markets, continue to demonstrate the strength of LOPE's regional branding strategy. We lower 1Q13 EPS from $0.40 to $0.39 (Street $0.38), on higher near term operating costs but raise FY13 EPS by 4% from $1.63 to $1.70 (Street $1.70) on stronger 2H margins. Our Buy rating reflects a positive 2013 outlook and opportunities for meaningful future enrollment growth and margin expansion.” Grand Canyon Education closed on Tuesday at $25.56.