Piper Jaffray Downgrades ITT Educational Services (ESI) to Underweight, $0.00 Price Target

Piper Jaffray downgraded ITT Educational Services (NYSE: ESI) from Neutral to Underweight with a price target of $0.00 (from $3.00), saying the latest move by the Dept. of Education could be the death knell.

Analyst Peter Appert commented, "A just-announced Dept. of Education ban on ITT Education enrolling new students will likely be the final blow in putting the company out of business. While ESI can likely maintain near-term profitability by further slashing costs, given a ban on new enrollments the company will very quickly become unprofitable, likely forcing shutdown and/or bankruptcy, in our view. We move to an Underweight rating and $0 price target."

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 $1.40 yesterday.

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