UPDATE: Oppenheimer Downgrades Lincoln Educational Services (LINC) toPerform; Visibility Clouded

August 29, 2012 7:28 AM EDT Send to a Friend
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Price: $2.65 +9.50%

Rating Summary:
    0 Buy, 4 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 45 | New: 4
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(Updated - August 29, 2012 8:56 AM EDT)

Oppenheimer downgraded Lincoln Educational Services (NASDAQ: LINC) from Outperform to Perform.

Analyst, Scott Schneeberger, said, "We're reducing our 2013E EPS to $0.24 from $0.60 on low visibility into the coming year, and modifying our rating to Perform. With enrollment challenges compounded by the recent announcement of seven campus closures, LINC's elevated risk profile (on enrollment/margin uncertainty)/low liquidity prompts us to the sideline. Though we're appreciative of LINC educating students via relatively short-duration programs for jobs unlikely to be "off-shored" (e.g., auto repair), enrollment pressure appears likely to persist through year-end. Maintaining 2012E EPS of $0.06 ($0.04-$0.10 guidance), we note a formidable 4Q12 y/y improvement is needed. LINC trades at 73x/18x our 2012E/2013E EPS vs. its 3-year historic FTM consensus EPS average of 12.4x/S&P 500 at 12.5x 2013E consensus."

For an analyst ratings summary and ratings history on Lincoln Educational Services click here. For more ratings news on Lincoln Educational Services click here.

Shares of Lincoln Educational Services closed at $4.36 yesterday.


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