ITT Educational Services Stock Rating Upgraded by Compass Point (ESI)
ITT Educational Services (NYSE:ESI) was upgraded by equities researchers at Compass Point from a “sell” rating to a “neutral” rating in a research report issued on Friday, TheFlyOnTheWall.com reports. The firm currently has a $35.00 price objective on the stock, up from their previous price objective of $15.00. Compass Point’s target price points to a potential downside of 14.11% from the stock’s previous close.
The analysts wrote, “We are raising ESI to Neutral, from Sell, and increasing our price target to $35, from $15, following better-than-expected 3Q13 earnings and a recent re-rating of peer group multiples. Two consecutive quarters of positive start growth and better expense control drive our more favorable outlook and momentum should limit near-term downside on the stock. However, we remain relatively cautious and continue to expect meaningful operational and regulatory risks remain in play long term. While the new start improvement may continue as comps remain depressed, we expect revenue per student will be an overhang well beyond 2014 as pricing pressure continues to mount. We also expect additional private student loan charges to materialize and from a regulatory perspective, the outstanding CFPB and SEC investigations remain serious concerns. At 15-16x our 2014 EPS estimate and 4-5x EV/EBITDA, though, we believe shares better reflect current risk/reward.”
ESI has been the subject of a number of other recent research reports. Analysts at Merrill Lynch reiterated a “neutral” rating on shares of ITT Educational Services in a research note to investors on Wednesday, October 16th. Separately, analysts at Wells Fargo & Co. upgraded shares of ITT Educational Services from a “market perform” rating to an “outperform” rating in a research note to investors on Tuesday, October 15th. Finally, analysts at Barclays raised their price target on shares of ITT Educational Services from $33.00 to $35.00 in a research note to investors on Monday, October 7th. They now have an “equal weight” rating on the stock. Three research analysts have rated the stock with a sell rating, eleven have issued a hold rating and three have assigned a buy rating to the company’s stock. ITT Educational Services has an average rating of “Hold” and an average target price of $27.67.
In other ITT Educational Services news, major shareholder Blum Capital Partners Lp unloaded 88,816 shares of ITT Educational Services stock in a transaction dated Wednesday, October 23rd. The stock was sold at an average price of $34.37, for a total transaction of $3,052,605.92. The sale was disclosed in a filing with the SEC, which is available at this link. Large shareholders that own more than 10% of a company’s shares are required to disclose their sales and purchases with the SEC.
ITT Educational Services (NYSE:ESI) traded up 4.01% during mid-day trading on Friday, hitting $40.75. 1,433,492 shares of the company’s stock traded hands. ITT Educational Services has a 52 week low of $11.69 and a 52 week high of $40.15. The stock’s 50-day moving average is $28.5 and its 200-day moving average is $22.08. The company has a market cap of $952.2 million and a price-to-earnings ratio of 10.79.
ITT Educational Services (NYSE:ESI) last released its earnings data on Thursday, October 24th. The company reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.54 by $0.26. The company had revenue of $259.40 million for the quarter, compared to the consensus estimate of $251.50 million. During the same quarter last year, the company posted $1.83 earnings per share. ITT Educational Services’s revenue was down 17.6% compared to the same quarter last year. Analysts expect that ITT Educational Services will post $3.93 EPS for the current fiscal year.
ITT Educational Services, Inc (NYSE:ESI) is a provider of postsecondary degree programs in the United States.
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