Markets & Finance

ThinkEquity Ups Career Education to 'Strong Buy'

ThinkEquity upgraded Career Education (CECO) to strong buy from overweight.

On Monday the company said its Gibbs College/Montclair campus is in receipt of a wrongful termination suit. Analyst Trace Urdan says the specific risk of the issue brought by the lawsuit is very small and finite. He notes the shares dropped more than 13% Monday on the news. He sees no widespread fraud or misrepresentation.

Urdan says all relevant metrics (default rates, placement rates, bad debt) are healthy, and show no evidence that the company is shoving people out the door without proper education. He sees $1.14 2003 earnings per share, and $1.49 earnings per share in 2004.

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