UPDATE: Deutsche Bank Reiterates On Strayer Education As Enrollment/Cost Control Drive EPS Revisions

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Strayer Education (NASDAQ: STRA), and raised the price target from $50.00 to $52.00.

In the report, Deutsche Bank noted, “Better enrollment & cost control drive EPS revisions. The combination of an undergrad price cut and a modestly better demand environment are contributing to positive enrollment trends. Improved retention is also contributing to slightly higher rev expectations. We lower 3Q EPS from $0.58 to $0.40 (prior Street $0.17) and raise 4Q from $0.50 to $1.06 (prior Street $1.00) to account for more 3Q seasonality. We raise 2015 EPS by 16% from $2.70 to $3.13 (prior Street $2.87). Our Hold reflects slightly better than expected new enrollment trends that are consistent with peers, combined with fair valuation.”

Strayer Education closed on Thursday at $51.82.