Piper Jaffray Initiates ITT Educational At Neutral (ESI)

Piper Jaffray initiated shares of ITT Educational Services ESI at Neutral on Wednesday. The firm has a $60 price target on the stock, which is based on 5x 2011E EPS. The company faces considerable regulatory overhangs, and the analysts cited this as the reason for their cautious view. During Wednesday's trading session, ESI shares shed 0.24% to $53.89. The company's CEO appeared on CNBC during the day and pretty much admitted that if there is legislative action against the private education industry, it will be a significant hurdle for his company.