UPDATE: Bank of America Reiterates Neutral Rating, Lowers PT on ITT Educational Services on Plans to Consolidate PEAKS

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

, but lowered the price target from $22.00 to $19.00. In the report, Bank of America noted, “After the close, ITT announced plans to consolidate prior PEAKS third-party loans onto its balance sheet. On 6/18/14, the Office of the Chief Accountant of the SEC informed ITT that it should have consolidated PEAKS on balance sheet from the time it had the substantive unilateral right to replace the servicer, or 2/28/13 as determined by ITT's audit committee. In turn, the company will restate financial statements starting from 1Q13. The company expects to take a $65-75mn pre-tax charge in 1Q13 as a result.” ITT Educational Services closed on Tuesday at $16.44.