Strayer Makes Back Some of Its Loss
Yesterday, shares of Strayer Education (STRA) fell more than 12 percent, closing at $150.45. Dow Jones Newswires had an article on a report by a Boston consulting firm that said the growth rate for applications at the company's schools was slowing dramatically.
The Off Wall Street report, based on Free Application for Federal Student Aid numbers, said Strayer "faces significant challenges and headwinds, that its recent growth is unsustainable and that significant earnings disappointments will occur," according to Dow Jones.
For-profit education companies like Strayer are generally expected to do better in a downturn, as people go back to school for more training.
Then today, Piper Jaffray released a report upgrading the stock from neutral to buy and setting the price target at $186, disputing Off Wall Street's analysis.
The stock is up above $160 a share now, a gain of 6 percent. It closed at $171.09 Friday.
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Posted by: J451 | March 24, 2009 7:24 PM
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