Deutsche Bank Has Hold Rating On ITT Education Services (ESI)

Deutsche Bank has a Hold rating and a $75 price target on shares of ITT Education Services ESI. In a note to clients, Deutsche Bank writes, "Due to the better than expected new enrollment trends and lower ad spend, we are raising our 2011E EPS by 11% from $9.59 to $10.63. We make no changes to our $75 price target as a bigger than expected decline in persistence in 1Q keeps our 2012E EPS largely unchanged (from $6.57 to $6.74). While the company is making its case that it is not that counter-cyclical, we still worry that we have not yet seen much of the potential negative impact from the pending Gainful Employment rule. We maintain our Hold recommendation." Shares of ESI closed at $73.99 on Thursday.