J.P. Morgan Remains Neutral on ITT Educational Services (ESI)

In a research report published today, J.P. Morgan retained ITT Educational Services' ESI rating of Neutral and price target of $75. In the report, J.P. Morgan states, "Yesterday morning, ESI reported its 4Q10 EPS of $3.14 (vs. consensus $3.12; JPMe $3.17). However, ~$0.19 of the 4Q10 EPS came from share repurchases. While ESI's new 2011 EPS guidance (of $8.50-$10.50) is substantially lower than prior consensus, mgmt suggested that it includes some impact of operational changes related to the published and proposed regulatory changes. Also, while new enrollments declined 9% y/y, the decline was less than feared by investors and lower than those reported for STRA (20% decline) and APOL (40%+ decline)." Shares of ITT Educational Services are currently trading at $70.50, up 1.47% from Thursday's market close.