Citi Downgrades 2U, Inc. (TWOU) to Neutral 'As Refinancing Options Narrow'

Citi analyst Thomas Singlehurst downgraded 2U, Inc. (NASDAQ: TWOU) from Buy to Neutral.

The analyst comments "We continue to have a positive view on the longer term opportunity in OPM (broadly defined) and see 2U/EdX as one of the preeminent players in the space. More recently, the strong rerating seen by (closest peer) Coursera is evidence that investors, too, share this sentiment. While there is a strong argument, in our view, that the enterprise of 2U is undervalued, it is increasingly difficult to see how the Gordian Knot of overleverage is resolved, meaning the pathway for 2U equity holders is increasingly uncertain. Reflecting this we reluctantly move to Neutral and remove our PT."

For an analyst ratings summary and ratings history on 2U, Inc. click here. For more ratings news on 2U, Inc. click here.

Shares of 2U, Inc. closed at $1.03 yesterday.

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