Piper Jaffray analyst, Peter Appert, noted that Grand Canyon Education (NASDAQ: LOPE) 1Q revenues and earnings modestly exceeded expectations, despite enrollment growth that was below forecast (up 8.0% vs. 8.8% expected). This appears to be a function of calendar issues (Easter timing impacted end of March starts).

The analyst believes that enrollment and earnings growth should stabilize in the high-single digit percentage area over the next several years. FCF per share will rise dramatically as the company demonstrates the cash flow leverage in its model from steady enrollment growth and stable-to-declining capital spending.

The 2016/2017 estimates move to $3.02/$3.27 from $3.00/$3.27 to reflect 1Q outperformance, offset by fractionally more conservative enrollment expectations.

The Price target moves to $49 from $45 rolling forward to 2017E EPS of $3.27 with an unchanged target P/E of 15x.

For an analyst ratings summary and ratings history on Grand Canyon Education click here. For more ratings news on Grand Canyon Education click here.

Shares of Grand Canyon Education closed at $44.17 yesterday.