Gerard Klauer keeps buy on Sylvan Learning (SLVN ).
Analyst Jeffrey Silber says Sylvan's plan to divest the K-12 education business, disband Sylvan Ventures, and focus on post-secondary education alleviates some of its complexities. Silber says the plan removes risks created in today's environment. He notes current consensus estimates include the K-12 business; the 80 cents to 82 cents 2003 earnings per share from continuing operations assumes a sale.
He says the stock is giving back some of recent weakness Tuesday, and he expects some upside from current levels if the transaction occurs. Silber does not have a banking relationship with Sylvan, and does not own the company's stock.