Barclays Maintains an 'Equalweight' on DeVry (DV); Fall Enrollments Weak as Expected

Barclays maintains an 'Equalweight' on DeVry (NYSE: DV) price target lowered from $45 to $40.

Barclays analyst says, "We are reducing FY'12-'13 EPS estimates by $0.12/$0.45 to $3.57/$3.36 (-24%/-6% y/y, resp.). We assume declining starts through next spring, then a modest rebound."

"DeVry remains a high quality operator, has solid long-term growth potential, and $4.75/share of net cash that it can deploy to create value. And, at CY'12 P/E & P/FCF multiples of 10.3x/9.6x, DeVry seems to already price in a poor near-term outlook. However, recent starts weakness will significantly pressure margins throughout FY'12 and into FY'13, putting off a profit rebound for at least 12-18 months. With limited visibility into the timing and magnitude of an enrollment rebound, we reiterate our 2-EW, and believe it is 3-6 months too early to get excited about DV."

For an analyst ratings summary and ratings history on DeVry click here. For more ratings news on DeVry click here.

Shares of DeVry closed at $34.35 yesterday.

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