FBR Capital Reiterates an 'Outperform' on DeVry (DV); Diversification Drives DeVry

FBR Capital reiterates an 'Outperform' on DeVry (NYSE: DV), PT $56.

FBR analyst says, "We are reiterating our rating on DV shares and maintaining our price target following yesterday's better-than-expected F3Q11 earnings report. This quarter demonstrates the diversification benefits inherent in DeVry's model as the enrollment deceleration within the company's DeVry University and Carrington segments was offset by continued strength in the Chamberlain, Keller, and DeVry Brasil units. Although the operating environment for the company and the overall industry remains challenging, we believe this diversification, coupled with the company's strong cash flow generation, should enable it to weather the regulatory storm better than peers. In addition, with shares trading at just 10.8x the midpoint of our normalized EPS estimate of $4.50–$4.80, we believe DV shares offer investors a better risk-adjusted way to capture potential upside in the for-profit industry."

For more ratings news on DeVry click here and for the rating history of DeVry click here.

Shares of DeVry closed at $50.09 yesterday.

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