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Tuesday, Aug 13
Education Management could rise 23%: Barrington
- It's not always easy being bullish on the for-profit education sector, but Barrington's Alexander Paris Jr. (Outperform) says shares of Education Management (EDMC) could rise 23% over the next year.
- "This quarter marks the second consecutive quarter of improving underlying trends, both in terms of overall demand and retention," Paris Jr. notes, adding that he sees new student starts turning positive next year.
- One rather disconcerting caveat: The analyst says the stock has no near-term catalysts.
- Price target is raised to $9 from $7.
- For the diametrically opposing view, see SA Pro contributor Brian Grosso's article published in June which predicts the company will be bankrupt within five years.