UPDATE: Wunderlich Securities Reduces Target to $8 on Lincoln Educational Services Corporation

Wunderlich Securities lowers its price target $3 to $8 on Hold-rated Lincoln Educational Services Corporation LINC in response to reduced EPS expectations. Wunderlich Securities notes, "We believe the basic business case for Lincoln's programs remains sound and we generally like where all the vocational school stocks are currently positioned, with little downside risk. But, assertions regarding conversion rates notwithstanding, we cannot identify the catalyst that will return starts to levels required to meet the company's revised guidance. Nor do we grasp how costs are likely to decline as volume increases between the first and fourth quarters. We continue to advise a cautious approach until this dynamic is more apparent in the results." LINC closed at $7.66 a share on Thursday.