NEW YORK (TheStreet) -- Credit Suisse started coverage of DeVry Education Group (DV) stock with an "outperform" rating and $29 price target.

The Downers Grove, IL-based company is a provider of educational services, including programs in business, healthcare and technology.

"While the FTC threat is formidable in terms of possible financial judgements and damage to the DeVry brand, we believe it affects only the rate of decline in the core business," Credit Suisse said in an analyst note.

Last week, the Federal Trade Commission sued the company claiming that its TV and online advertisements mispresented the employment success and earnings of its graduates, the Wall Street Journal reported.

"The company's other businesses, which represent the foundation of our valuation case, should remain relatively unaffected. We are sympathetic to the company's claim of FTC overreach and do not consider management practices suspect as a result of the allegations," the firm added.

Shares of DeVry closed higher by 9.73% to $19.84 on heavy trading volume on Wednesday.

About 1.53 million of the company's shares were traded today, compared to its average volume of 996,135 shares per day.

Separately, TheStreet Ratings Team has a "hold" rating with a score of C on the stock.

The primary factors that have impacted the 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, reasonable valuation levels and expanding profit margins.

As a counter to these strengths, the team also finds weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DV

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