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Deutsche Bank Initiates Coverage on Corinthian Colleges (COCO) with a Buy; Turnaround Strory

October 27, 2009 6:55 AM EDT
COCO Hot Sheet
Rating Summary:
    3 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Deutsche Bank initiates coverage on Corinthian Colleges (Nasdaq: COCO) with a Buy. $27 price target.

Deutsche analyst says, "The Corinthian turnaround story is hitting its stride with rapidly improving margins and now strong FCF. The Heald acquisition highlights how comfortable management is with their internal capabilities. We believe COCO can reach its goals with new potential upside from Heald. We initiate with 1Q10E EPS of $0.28 (in-line with Street), FY10E EPS of $1.43, and FY11 EPS of $2.03 and $2.47 in FY12...With the recent planned CEO succession and Heald acquisition, management is implying strength in their internal controls and capabilities. Even specific regulatory actions versus the firm are much reduced since 2007. We think as Corinthian distances itself from legacy compliance issues the multiple will expand."

To see more analyst ratings on COCO Click Here.


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