UPDATE: Bank of America Reiterates Neutral Rating, Lowers PT on DeVry Education Group Following Mixed Quarter Report

In a report published Wednesday, Bank of America analyst Sara Gubins reiterated a Neutral rating on

, but lowered the price target from $42.00 to $40.00. In the report, Bank of America noted, “DV reported another mixed quarter: weakness in the DeVry University (DVU) segment (56% of rev.) but resilience in the non-DVU base. DV undergrad starts declined 12% in Nov. & -7.9% in Jan. DV expects March start trends to improve but is uncertain about the trajectory despite a significantly easier comparison (-21.2% last year) & the scholarship reintroduction (up to $20k). Bachelors programs (eg APOL, STRA) continue to struggle more than lower degree verticals given competition from traditional schools in online and higher costs (longer duration).” DeVery Education Group closed on Tuesday at $36.12.