Sterne Agee Neutral On DeVry (DV)

Sterne Agee is Neutral on shares of DeVry DV after the for profit education company reported quarterly earnings that beat estimates, but showed slower than expected enrollment. In the report Sterne Agee notes, "We view regulatory risk to DV as moderate and not excessive given the diversification in its model (University, Healthcare, Professional Education (CPA, CFA), International, etc.) and overall a good reputation for several of its programs. Management avoided any real discussion on the potential impact of Gainful Employment on its business, which is understandable given the lack of information. We are maintaining our Neutral rating on shares of DV as we anticipate a slowdown in enrollment growth and the lingering regulatory concerns." Shares of DeVry Inc. are down 91 cents to $44.40.