UBS Maintains a 'Neutral' on The Washington Post (WPO); Q1 Review: Lack of Visibility on Kaplan Business Trends; Still on Sidelines

UBS maintains a 'Neutral' on The Washington Post (NYSE: WPO), PT lowered from $440 to $430.

UBS analyst says, "Starts declined by 48% at Kaplan, but excluding Kaplan Commitment starts still declined by 41%. Release suggests weakness due to “marketing and admissions changes to increase student selectivity” and “improving economic conditions and falling unemployment”. Unclear if attributable to former or latter. Important distinction, as managed contraction of Kaplan suggests subsidiary has a life post-implementation of operating changes. If external conditions driving results, then perhaps we are incorrect in modelling profit at Kaplan Higher Education in 2012." (UBS raises FY11 EPS estimate from $22.95 to $23.49 and FY12 from $21.56 to $21.88)

For more ratings news on The Washington Post click here and for the rating history of The Washington Post click here.

Shares of The Washington Post closed at $412.25 yesterday.

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