BofA Maintains Underperform on Corinthian Colleges as News of SEC Probe Pushes Shares Down 9+%

Bank of America analyst David Chu issued a concerning note on

Tuesday morning following news of an SEC probe Monday afternoon. Chu reminded investors Corinthian is already handling a slew of regulatory problems, and the SEC probe news only creates yet another overhang for holders in the company. Chu speculates Corinthian could raise cash if the Department of Education fails to adjust the company's financial responsibility score. Bank of America has retained an Underperform rating and $2.50 price target on shares of Corinthian Colleges. Shares of Corinthian Colleges are down 9.5 percent to $2.53 at last check.