RBC makes Grand Canyon Eductation ‘Top Pick,’ lifts price target; Strayer Education downgraded
By APTuesday, March 23, 2010
RBC names Grand Canyon Education ‘Top Pick’
NEW YORK — An RBC analyst named Grand Canyon Education Inc. a “Top Pick” Tuesday, saying the for-profit school’s decision to charge for more credit hours will accelerate earnings growth.
In a client note, analyst Robert Wetenhall wrote investors are underestimating the benefit of Grand Canyon’s switch to charging for four credit hours in an eight-week term. The for-profit school had been using a three-credit model.
Wetenhall also raised his share price target to $35 from $30. The stock rose 49 cents to $26.45 in afternoon trading. It earlier hit a new year high of $27.23.
Meanwhile, Wetenhall downgraded Strayer Education Inc. from a “Top Pick” to “Outperform” after a recent rally in its shares. Strayer stock has already climbed 16 percent so far this year. Shares of other schools may perform better over the next 12 months, he said.
Strayer stock slipped $1.23 to $244.92.
