Citigroup Says Grand Canyon Education's Real Estate May Be An Overlooked Asset

Grand Canyon Education LOPE gained one percent after a Citigroup analyst said its real estate is a forgotten asset in valuing the company's shares.

Grand Canyon offers college programs both online and on "ground" through its Grand Canyon University in Phoenix.

Analyst Philip Stiller said the value of its bricks-and-mortar student dormitories represents 10 percent to 15 percent of the stock's current value. That could grow to 25 percent by 2015.

"While many appreciate the growth of the company's ground campus, we believe the value of its real estate is overlooked from a valuation perspective," Stiller said in a research note.

Stiller maintains a Buy rating and a $50 price target.

Grand Canyon closed Wednesday at $46.25, up 1.3 percent.