Bridgepoint Education downgraded to Sell at Deutsche Bank


Deutsche Bank downgrades Bridgepoint Education (BPI -8.2%) to Sell from Hold with a PT of $13 (implying a potential downside of 34% from Friday's close).

Analyst Paul Ginocchio: "With the recent price reductions at University of Phoenix and Strayer, Ashford is now the most expensive of these national online players. We have lowered our estimates for Ashford University as we now assume they will have to lower their tuition price in the coming year to remain competitive."

Ginocchio slashes his 2014 estimate to significantly below consensus, from revenue/EPS of $649M/$0.47 to $620M/$0.22.

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Comments (1)
  • sumikuboanr
    , contributor
    Comments (240) | Send Message
     
    "Ginocchio slashes his 2014 estimate to significantly below consensus".

     

    Either this guy's a genius and sees what other analysts can't see or he's trying to separate himself from the pack by making an outrageous guess and hoping he gets lucky. We'll see after earnings are announced. Extrapolating results from other companies' results doesn't always make sense. I'd like to see BPI announce a massive buyback program and put the enourmous amount cash they have on hand to good use. Where's Ichan when you need him?
    4 Nov 2013, 08:12 PM Reply Like
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