Wunderlich Securities Reiterates Buy Rating on K12

Wunderlich Securities is out with a research report this morning, where it reiterates its Outperform rating on K12 LRN; it has a $35.00 price target on the stock. The WS analysts cited the company's recent announcement that ERP implementation issues that had delayed K12 Inc.'s earnings report had affected its operations in any way. The company expressed confidence that Q4 would be in line with expectations. Wunderlich Securities remains bullish on the name, which they beleive offers investors strong defensive growth. As for valuation, the analysts remarked, “Our $35 target consists of a 30x multiple of our CY12 EPS estimate of $1.02 plus an estimated $4.89 in net cash per share, which suggests a return of over 30% from the current price level. We believe such a multiple is warranted for a stock with such strong and highly visible growth.”