Morgan Stanley Overweight On DeVry

Morgan Stanley is out with a research report on DeVry DV after it reported earnings yesterday. It has an Overweight rating and a $60 price target on shares. In a note to clients, Morgan Stanley writes, "Weak student starts at DeVry U and Carrington – and a plan to spend on boosting enrollments and improving outcomes will likely weigh on DV shares as ests come down. However, even with lower expectations, DV is an attractive way to participate in the for-profit ed space, in our view. We think the diverse nature of its programs, its focus on student outcomes, room for greater efficiency, and FCF buildup will drive earnings growth over the long-term. We are cutting estimates for F12 and beyond and despite rolling out our DCF a year our PT is now $60 (was $65)." Shares of DV lost $4.69 to $48.70 in after-hours trading yesterday.