The firm said it lowered its rating on the education services provider based on worsening trends in the U.S. for profit industry, and its belief that it doesn't see how the market will change its negative view on DeVry undergrad.
Deutsche Bank cut its price target on DeVry to $34 from $40.
"With trends across the U.S for profit industry getting worse, it's hard to see how the market will change its negative view on DeVry undergrad. Our Sept. upgrade on DeVry was based on continued positive trends at the three key growth assets, which did not play out. We now cut to hold, despite the drop in the stock price, as we don't see what changes in the coming quarters to give investors the confidence to re-rate the stock," the firm said in an analyst note.
Shares of DeVry closed at $31.86 on Friday afternoon.
Separately, TheStreet Ratings team rates DEVRY EDUCATION GROUP INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEVRY EDUCATION GROUP INC (DV) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."