Bank of America Merrill Lynch Maintains Buy on K12 (LRN)

Bank of America Merrill Lynch is out with its report today on K12 LRN, maintaining Buy. In a note to clients, Bank of America Merrill Lynch writes, "On Thursday, K12 announced that it is buying the assets of Kaplan Virtual Education. K12 did not disclose financial terms but we do not believe this was a financial large deal. The acquisition has the potential to have some near-term drag on results but we believe it also this enhances K12's position as the leading operator in the virtual school sector and eliminates what could have become a significant competitor." Bank of America Merrill Lynch has a $40 PO on LRN. Shares of LRN closed Thursday at $34.45.