Oppenheimer Has Outperform On DeVry Inc. (DV)

Oppenheimer & Co. has an Outperform rating and a $56 price target on shares of DeVry Inc. DV after the company reported earnings yesterday. In a note to clients, Oppenheimer writes, "F2Q11 EPS of $1.25 (+25% y/y) exceeded our estimate/consensus of $1.16/$1.19 and we're increasing our earnings outlook and PT to $56 from $49. Revenue of $551.5M topped our estimate/consensus of $547/$549. Operating outperformance contributed $0.08 of the $0.09 EPS upside vs. our estimate. Decelerating starts at BT&M and Carrington were partly mitigated by solid persistence, continued Chamberlain strength, and Becker outperformance. Though we're modeling enrollment/revenue/EPS growth to slide over CY11, we anticipate rebuild to occur in CY12 on stabilization in core BT&M (and Carrington), improvement at Ross, sustained strength at Chamberlain, diligent management of efficiencies vs. investment, share repurchases and moderate regulatory impact. With no debt and ample cash/FCF DV is compelling at 10x our CY12E EPS." Shares of DV lost 83 cents yesterday to close at $47.38.