UPDATE: Compass Point Reiterates on Corinthian Colleges on Recent Unfavorable Developments

In a report published Thursday, Compass Point analyst Michael Tarkan reiterated a Sell rating on Corinthian Colleges (NASDAQ: COCO), but lowered the price target from $1.50 to $1.00.

In the report, Compass Point noted, “We are maintaining our Sell rating and lowering our price target on COCO shares to $1.00, from $1.50, after the company reported 2Q14 earnings and provided a number of unfavorable regulatory and operational developments, including the likely termination of the company's existing third party lending agreement and a new Department of Education (ED) investigation. In addition, the company's 2Q14 and forward new start guidance once again fell short of our low expectations. We continue to expect meaningful liquidity, operational, and regulatory challenges ahead, and simply put, we believe management is running out of options.”

Corinthian Colleges closed on Wednesday at $1.30.