Barclays Reiterates an 'Equalweight' on Career Education (CECO); Value May Exist, but Uncertainty to Remain High

Barclays reiterates an 'Equalweight' on Career Education (NASDAQ: CECO) price target lowered from $10 to $8.

Barclays analyst says, "We reiterate CECO at EW, and find the risk-reward unattractive due to difficulty in assessing the potential risks combined with very weak current fundamentals. We expect the company to be one of the later companies in the industry to return to enrollment growth, and believe potential for legal and regulatory liability could remain an overhang for many quarters."

"Given the lack of information regarding the breadth of wrongdoing found in the placement rate investigation, it is impossible to generate a high conviction estimate of the ultimate liability to CECO. However, we believe it could be material."

Barclays lowers FY12 EPS estimate from $0.83 to $0.78.

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 $7.14 yesterday.

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