BMO sees more upside for K12

BMO has reiterated an Outperform rating on K12 (LRN +1.7%) on the heels of the company's FQ4 report which beat on the top and bottom line.

"While management does not plan on providing FY14 guidance until mid-October, it did say it was comfortable with current consensus estimates," analyst Jeffrey Silber notes, adding that top line expectations may prove "conservative."

Silber sees "more upside" for the shares on top of last Thursday's strong gains.

"You expected SG&A in the quarter to be sizably higher [and it] came in below our expectations," Silber said on the call, before asking if there are "any costs that were deferred." "I don't think there's anything that significant that was deferred from Q4 into Q1," CFO James Rhyu responded. (transcript)

Price target hiked to $40 from $29.

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