Deutsche Bank Downgrades ITT Educational Services (ESI) to Sell, Citing Cyclical and Structural Concerns

Deutsche Bank downgraded ITT Educational Services (NYSE: ESI) from Hold to Sell with a price target of $50 (down from $66).

The firm cited to 1) concerns about new enrollment trends due to the improving labor market, and 2) the belief that ESI over time has to continue to effectively lower tuition prices due to a more price sensitive student.

"With the stock up 20% YTD, despite yesterday’s 5% decline, we think it is an opportune time."

Deutsche Bank lowered ’12E & ’13E EPS by 1% and 9%, respectively, due to lowered new enrollment expectations.

For an analyst ratings summary and ratings history on ITT Educational Services click here. For more ratings news on ITT Educational Services click here.

Shares of ITT Educational Services closed at $68.29 yesterday.

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