UBS Maintains a 'Buy' on DeVry (DV); Q4 EPS Beat but Weak Starts at DeVry U Results in Lowered Guidance

UBS maintains a 'Buy' on DeVry (NYSE: DV), price target lowered from $75 to $70.

UBS analyst says, "Clean Q4 EPS beat but DeVry U starts down 26%, resulting in 2012 EPS guide down."

"Thesis unchanged, as we think we have seen trough starts declines: Our upgrade in July 2011 stated our view that starts would be weak for the summer ’11 term but that afterwards investors would see a deceleration in decline (second derivative). Starts clearly worse than we expected, but comps moving forward still get easier. Stock likely down 5-10% tomorrow, and could trade at 5x 2012E EV/EBITDA (cheap in our opinion), which could prove a particularly attractive entry point." (UBS lowers FY12 EPS estimate from $4.79 to $4.53 and FY13 from $5.28 to $4.98)

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

Shares of DeVry closed at $53.39 yesterday.

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