UBS Downgrades Washington Post (WPO) to Neutral; Risk That Kaplan Violates 90/10;Legislative Relief Needed
WPO Hot Sheet
Rating Summary:0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
UBS downgrades Washington Post (NYSE: WPO) from Buy to Neutral. PT lowered from $475 to $430.
UBS analyst says, "The fundamentals of the sector have deteriorated since we launched coverage a month ago. We note that over the past several weeks Apollo (Nasdaq: APOL) & Corinthian (Nasdaq: COCO) have indicated potential violation of the 90/10 rule in 2012, which leads us to believe the risk exists that Kaplan could violate the rule as well. We previously assigned value to Kaplan on the basis that the company could benefit from regulatory and legislative relief regarding gainful employment and 90/10, which now seems m.ore remote following the failure of the Republicans to take control of the Senate."
"We are lowering our 2011 revenue estimate to $4.3B from $4.4B. We are lowering our 2011 EPS to $19.21 from $26.70."
To see all upgrades/downgrades on shares of WPO, visit our Analyst Ratings page.
Shares are currently trading at $372.68, down $14.62 (-3.77%)
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UBS analyst says, "The fundamentals of the sector have deteriorated since we launched coverage a month ago. We note that over the past several weeks Apollo (Nasdaq: APOL) & Corinthian (Nasdaq: COCO) have indicated potential violation of the 90/10 rule in 2012, which leads us to believe the risk exists that Kaplan could violate the rule as well. We previously assigned value to Kaplan on the basis that the company could benefit from regulatory and legislative relief regarding gainful employment and 90/10, which now seems m.ore remote following the failure of the Republicans to take control of the Senate."
"We are lowering our 2011 revenue estimate to $4.3B from $4.4B. We are lowering our 2011 EPS to $19.21 from $26.70."
To see all upgrades/downgrades on shares of WPO, visit our Analyst Ratings page.
Shares are currently trading at $372.68, down $14.62 (-3.77%)
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
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