UPDATE: Compass Point Initiates Coverage on DeVry with Buy Rating, $37 PT on Diversification

In a report published Friday, Compass Point analyst Michael Tarkan initiated coverage on DeVry DV with a Buy rating and $37.00 price target. In the report, Tarkan noted, “We are initiating coverage of DeVry, Inc. (DV) with a Buy rating and $37.00 price target. Although we have a cautious view of the overall forprofit industry related to ongoing operational and regulatory challenges, we believe DeVry's segment diversification will provide enough support to both enrollment and revenue per student levels, helping it recover from this multi-year transition period more quickly than peers. The company's regulatory risk is also relatively modest and its strong balance sheet should continue to drive additional share repurchase, dividends, and selective M&A. Although the stock has found support over the past few months, we expect continued progress as operating trends continue to stabilize.” DeVry closed on Thursday at $31.04.