NEW YORK
Analysts on Tuesday said DeVry Inc.’s turnaround is progressing, even though the for-profit education provider missed analyst estimates for fiscal fourth-quarter sales.
The company’s adjusted quarterly profit which excludes some one-time items beat estimates by a penny.
JPMorgan Securities Inc. analyst Edward J. Yruma, in a client note, kept an “Overweight” rating on shares, noting strong results in the company’s growing health care and test preparation segments. While the DeVry University segment gave mixed performance, the analyst said that underscores the turning nature of the business.
“Over time, particularly as the turnaround gains traction, we believe the market will reward DeVry for its visible margin and growth opportunity,” wrote Yruma.
Lehman Brothers analyst Gary Bisbee kept an “Equal Weight” rating on shares, and boosted his target price to $34 from $33.
“DeVry reported better than expected enrollment results across all of its units, in a clear sign that its turnaround efforts continue to progress,” the analyst wrote. He noted the company is making efforts to reduce its cost structure.
Shares closed at $33.68 Monday.
– Associated Press
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