Needham & Company Resumes Career Education (CECO) at Buy

Needham & Company analyst James Ricchiuti resumes coverage on Career Education (NASDAQ: CECO) with a Buy rating and a price target of $10.00.

The analyst comments "CECO is in the midst of a significant transformation that has led to an acceleration in bookings and we believe will result in stronger growth in revs and profitability. Under current mgmt., which took the reins in 2017, CECO has registered book-to-bills that have been solidly above 1.0 in six of the last seven quarters. Assuming a stable macro environment, we believe CECO can continue to drive growth across key market verticals in the emerging low-carbon economy. Mgmt is targeting revenue growth of 4-7%, or around 2x the market, and EBITDA margin expansion. Additionally, we look for its asset light business model to result in improved free cash flow over the next year. Our $10 target price translates to 18x our 2020 EPS estimate, which is in line with the company's peers."

For an analyst ratings summary and ratings history on Career Education click here. For more ratings news on Career Education click here.

Shares of Career Education closed at $21.14 yesterday.

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