UPDATE: Credit Suisse Raising Price Target on K12

Credit Suisse is out with a research report on K12 Inc. LRN and is raising its price target to $31 from $25, but keeping its Neutral rating on shares after earnings. In a note to clients, Credit Suisse writes, "EPS missed consensus on margin, partly due to ERP expenses. ($0.08) Q4 GAAP EPS (incl. ~$0.04 in one-time-systems, transaction, and related expenses, of which ~$0.02 were ERP expenses) missed $0.00 Credit Suisse Estimates (Credit Suisse Estimates)/($0.01) consensus on margin downside, which more than offset impact of revenue beat. $128M in revenue (up 45.2% YoY/26.9% organic vs. Q3's +34.8%/22.7%), which incl. ~$15M contribution from KCDL/AEC acquisitions/new business initiatives, beat $121.2M Credit Suisse Estimates/$123.1M consensus. (4.8%) GAAP EBIT Margin fell 270 bps YoY, vs. Q3's -240 bps, and missed 0.6% Credit Suisse Estimates." Shares of LRN closed at $31.04 yesterday.