Barrington Research Maintains Outperform, $30 Target on K12 Inc
Barrington Research reiterates its Outperform rating and $30 target price on K12 Inc (NYSE: LRN) on improved confidence regarding the company's long term outlook following a share pullback on the heels of a negative NYT article.
Barrington Research says, "Since the publication of the NYT article on December 13, management said that it has not noticed any negative impact (either on enrollments or retention) on its core business (virtual charter and private K-12 school), which represents approximately 80% of revenues. Moreover, their institutional business (approximately 10% of revenue) has signed new contracts with more than 100 school districts (40 new and 60 existing customers) since the article's publication (with only one existing customer expressing any concern)."
LRN closed at $19.48 per share on Wednesday.
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