ITT Educational (ESI) Stock Defended at Wells Fargo
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Rating Summary:
6 Buy, 9 Hold, 6 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 9 | Down: 7 | New: 39
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Wells Fargo maintained an Outperform rating on ITT Educational Services (NYSE: ESI) but reduced its price target to $21-$24 (from $26-$29). Earlier the company filed an 8-K discussing a larger than anticipated letter of credit requirement from lenders. It also received a wells notice from the SEC (link). In the view of analyst Trace Urdan, the stock's decline is an overreaction.
Regarding the Wells Notice, Urdan trimmed valuation by $50 million to account for possible settlement. Regarding the LOC, he said it should not be a surprise.
While he trimmed estimates, he said the stock is "dramatically oversold" and implies going concern risk that he does not see.
For an analyst ratings summary and ratings history on ITT Educational Services click here. For more ratings news on ITT Educational Services click here.
Shares of ITT Educational Services closed at $7.65 yesterday.
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