Zacks Investment Research upgraded shares of Capella Education Co. (CPLA) from NEUTRAL to OUTPERFORM on November 20, 2014, with a target price of $82.00.
We are upgrading Capella Education to Outperform from Neutral on solid third quarter 2014 results backed by a better-than-expected increase in total enrollment and strong margins. Encouraged by the performance, the company also provided a positive guidance for the upcoming quarter. Capella's third-quarter 2014 earnings of $0.62 per share beat the Zacks Consensus Estimate by 12.7% and rose 29.2% year over year owing to solid revenues. Surpassing the company's expectation of 1% to 2% increase, revenues of $103.1 million increased 2.4% year over year and beat the consensus mark by 1.1% on the back of an increase in enrollment and higher tuition fees. Total enrollment rebounded during the quarter. New enrollments rose 11.9% year over year due to increases across all programs, particularly in Master's program.
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