UBS Maintains a 'Buy' on DeVry (DV); Q4 EPS Beat but Weak Starts at DeVry U Results in Lowered Guidance
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Price: $31.10 +0.78%
Rating Summary:
5 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Rating Summary:
5 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Trade DV Now!
UBS maintains a 'Buy' on DeVry (NYSE: DV), price target lowered from $75 to $70.
UBS analyst says, "Clean Q4 EPS beat but DeVry U starts down 26%, resulting in 2012 EPS guide down."
"Thesis unchanged, as we think we have seen trough starts declines: Our upgrade in July 2011 stated our view that starts would be weak for the summer ’11 term but that afterwards investors would see a deceleration in decline (second derivative). Starts clearly worse than we expected, but comps moving forward still get easier. Stock likely down 5-10% tomorrow, and could trade at 5x 2012E EV/EBITDA (cheap in our opinion), which could prove a particularly attractive entry point." (UBS lowers FY12 EPS estimate from $4.79 to $4.53 and FY13 from $5.28 to $4.98)
For more ratings news on DeVry click here and for the rating history of DeVry click here.
Shares of DeVry closed at $53.39 yesterday, with a 52 week range of $36.34-$66.85.
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UBS analyst says, "Clean Q4 EPS beat but DeVry U starts down 26%, resulting in 2012 EPS guide down."
"Thesis unchanged, as we think we have seen trough starts declines: Our upgrade in July 2011 stated our view that starts would be weak for the summer ’11 term but that afterwards investors would see a deceleration in decline (second derivative). Starts clearly worse than we expected, but comps moving forward still get easier. Stock likely down 5-10% tomorrow, and could trade at 5x 2012E EV/EBITDA (cheap in our opinion), which could prove a particularly attractive entry point." (UBS lowers FY12 EPS estimate from $4.79 to $4.53 and FY13 from $5.28 to $4.98)
For more ratings news on DeVry click here and for the rating history of DeVry click here.
Shares of DeVry closed at $53.39 yesterday, with a 52 week range of $36.34-$66.85.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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