Wunderlich Securities Reiterates K12 Buy, $35 PT

Wunderlich Securities reiterated its K12 LRN Buy rating and $35 price target in a research report published today. In the report, Wunderlich Securities states, "Pearson plc (PSO-NR) announced this morning that is has acquired Connections Academy, the No. 2 player in the virtual K-12 school market for $400 million in cash (2.1x CY11 revenue). Connections serves 40,000 students in 21 states vs. K12 Inc.'s (LRN) 82,000+ students in 27 states. The deal -- including the premium price -- represents a robust endorsement of the virtual school market, but also likely signals a higher level of competition for K12 going forward." Shares of K12 were trading at $26.92 at the time of posting, up 2.12% from Wednesday's market close.