Courtesy of Benzinga.
In a report published Monday, Bank of America analyst Sara Gubins reiterated an Underperform rating on ITT Educational Services, Inc. (NYSE: ESI), and raised the price target from $7.00 to $8.00.
In the report, Bank of America noted, “ESI shares rallied 131% over the past two trading days as investors are assigning lower going concern risk. ESI had $207mn in cash at 3Q14-end. It expects roughly $190mn in cash at year-end, after making $60-70mn in PEAKS related payments. After incorporating $90mn for the letter of credit, this leaves ~$100mn in unrestricted cash. This should be enough to largely mitigate liquidity concerns, in our view. We are lowering estimates on higher interest expense for consolidating PEAKS on balance sheet. We have kept revenue and margin assumptions largely unchanged.”
ITT Educational Services closed on Friday at $9.19.
Latest Ratings for ESI
Date | Firm | Action | From | To |
---|---|---|---|---|
Aug 2014 | William Blair | Downgrades | Outperform | Market Perform |
Aug 2014 | Bank of America | Downgrades | Neutral | Underperform |
May 2014 | Deutsche Bank | Maintains | Hold |
View More Analyst Ratings for ESI
View the Latest Analyst Ratings
Posted-In: Bank of America Sara GubinsAnalyst Color Price Target Analyst Ratings