Deutsche Bank Has Hold On Corinthian Colleges

Deutsche Bank is out with a research report on Corinthian Colleges Inc COCO and it has a Hold rating and a $2 price target on shares. In a note to clients, Deutsche Bank writes, "Due to the new changes to the associate program combined with previous changes, we believe the outlook for COCO's earnings is highly uncertain. Our FY 1Q12E EPS is unchanged at $0.01 (vs prior Street $0.14), but we raise FY2012 (June) EPS from ($0.27) to ($0.10) as we no longer expect a reversal of the 12% tuition increase due to 90/10. We rate COCO a Hold due to its highly uncertain future cash flow offset by its option-like valuation. We lower our price target from $4.50 to $2 to be in-line with our updated DCF analysis." Shares of COCO lost 15 cents yesterday to close at $1.96.